Containerboard - European Linerboard Up $211/Ton Since February; US Up Just $50/Ton


Kraft (or virgin) linerboard prices in Europe have jumped from €585 per metric ton (tonne) in February to €725 per tonne this month, when looking at the German price for 175-gram basis-weight “kraftliner” as reported by trade publisher RISI. This equates to a €140/tonne or 24% increase in just 6 months. However, since February, US prices have risen by $50 per ton (to $705/ton from $655) while the euro has surged about 12% to more than $1.18 per € today from around $1.06 in February. Bottom line, despite the $50/ton US price increase in April, the US price per short ton has plunged to a $72 per short ton discount to European board from an $89/ton premium in February and a $93/ton premium in April. (Note that we convert the European board prices to dollars at the-then exchange rates and also in terms of short (i.e., 2,000-lb.) tons. This is the largest US discount vis-à-vis European prices in 3 years.