15 February 2024

Pricing Opaqueness in Containerboard



By Jim Thompson

The containerboard world is atwitter with the current pricing information available from the usual recognized sources. The mill think the published prices are too low, and, naturally, the independent boxmakers think they are just fine.

The problem here, as it always has been, is the opaqueness of the markets--there are no published prices, that is, out in the open, where everyone can see them. This problem has existed forever.

The same is true in other grades as well as recycled fiber. And, occasionally, there are perturbations in those markets that cause widespread consturnation as well.

The solution is, of course, to get a well recognized open trading market to make a market in these grades. I have been involved in such efforts going back more than thirty years. Unfortunately, when one gets serious about this, the need evaporates. My experience is that most players secretly like the opaqueness and only bellyache about it when they think they are personally being negatively affected. Confront them with a real, open market possiblity and they suddenly get a "deer in the headlights" look.

Some day this may change, but I can attest that in the past thirty years, there has been virtually no movement.

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Note: Neither I or anyone on the Paperitalo staff own any individual pulp and paper stocks.

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