Board Converting News, April 18, 2022

Board Converting News, April 18, 2022

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years April 18, 2022 VOL. 38. NO. 16

AICC Associates Get Valuable Input From Member Box Makers BY LEN PRAZYCH Joe Morelli, Chairman of AICC’s Associate Members, has been working with his executive committee on ways to address declining member- ship at AICC regional events. Member surveys have helped to bring more interest and focus to the events, which was successfully demon-

WestRock To Close Mill In Panama City, Florida

Norcross, Georgia based WestRock has an- nounced that it will permanently end oper- ations at its mill in Panama City, Florida. The mill employs approximately 450 and produc- es about 645,000 tons of containerboard, pri- marily heavyweight kraft, a year. Work at the mill is expected to end by June 6, 2022. The company will switch the manufactur- ing of select grades of containerboard cur- rently produced at the mill to its other facil- ities. Following the closure, West Rock will provide employees with severance and out- placement assistance in line with its policy and labor union agreements. “A decision to close a facility and impact the lives of our employees is never easy to make,” said WestRock CEO David Sewell. “As we implement our plans to close the Panama City mill, we do so with great appreciation for the many contributions of the team there. We are committed to assisting our Panama City team with exploring roles at other WestRock locations and outplacement assistance.” The decision to close the mill is part of WestRock’s efforts to maximize returns on its capital and increase its assets’ performance.

strated at the Associates Meeting at AICC’s 2022 Spring Meeting at the JW Marriott Desert Springs Resort & Spa on Wednesday, April 6. More than 675 members attended the meeting and more than 100 attended the Associates Meeting that was perhaps the most informa- tive and relevant ever conducted. Morelli moderated a “round table” of three suppliers – Greg Jones of SUN Automation Group, Tim Connell of AG Stacker and Pat Szany of ACM – and three box makers – Matt Davis of Packaging Express, Gary Brewer of Package Crafters and Finn MacDonald of Independent II – with questions whose answers would bring value to Associate Mem- bers when calling on their box maker clients: Morelli : Keynote speaker Mark Allen Roberts talked about how the pandemic would forever change the way sales process happens. As we’ve been coming out of the pandemic, has it altered the way you deal with your suppliers? CONTINUED ON PAGE 24 The AICC Associates Meeting featured a discussion among member suppli- ers and box makers. From left, Greg Jones of SUN Automation Group, Tim Connell of AG Stacker, Pat Szany of ACM, Matt Davis of Packaging Express, Gary Brewer of Package Crafters, and Finn MacDonald of Independent II.

CONTINUED ON PAGE 5

WHAT’S INSIDE 5 NAM: Federal Reserve Signals 50-Basis-Point Hike At Meeting 10 Saica To Expand New Ohio Corrugated Plant 14 Bob Landaal Provides Annual FBA Update 18 Seeing The Light After A Long Shadow

2 April 18, 2022

AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner

26# Semi-Chem. Medium

$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00

West Coast U.S. Average

The Price is Right

SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets

E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.

200# 275#

$62.26

$72.05

$62.69 $82.80

$85.35 119.54

$73.13 101.29

97.32

99.89

90.86

113.65

OYSTER UP-CHARGE 8.34

8.34

8.34

8.34

8.34

8.34

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08 148.46

122.76 131.80

More box makers and brokers are relying on the containerboard pricing in Board Converting News to negotiate their contracts with end users.

CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.

SEE THE CURRENT PRICES IN PRINT OR ONLINE AT WWW.BOARDCONVERTINGNEWS.COM.

Len Prazych at 518-366-9017 [email protected]

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

3

www.boardconvertingnews.com

Aprill 18, 2022

Calling Profero Systems just another equipment supplier is like calling the Tour just a bike ride. Profero Systems

Proven unsurpassed customer service over the long run, commitment to our customers is second to none!

Add value to your Corrugating Process, be the go-to Company for your customers.

DON’T GET LEFT BEHIND!

www.ProferoSystems.com

704-923-0990

PO BOX 950 DALLAS, NC 28034

4 April 18, 2022

www.boardconvertingnews.com

WestRock To Close (CONT’D FROM PAGE 1 )

The company said that the mill would require “signifi- cant” capital investment to maintain and improve, but that fluff pulp production is not a priority in WestRock’s strategy to focus on higher-value markets. WestRock will divert the funds required to maintain the mill towards improving other key assets. In February this year, the company posted a 12.5 percent net sales growth of $551 million to $4.95 billion for the first quarter of the fiscal year 2022 (FY22), which ended on December 31. Sales of the company’s paper, corrugated packaging and consumer packaging segments rose by $262 million, $201 million and $76 million respectively during the quarter. NAM: Federal Reserve Signals 50-Basis-Point Hike At May Meeting In the minutes to the Federal Open Market Committee’s March 15–16 meeting, participants were determined to deal with inflation in the U.S. economy. While many mem- bers were prepared to increase the federal funds rate by 50 basis points at that meeting, the Russian invasion in Ukraine posed new uncertainties to the outlook, with the FOMC eventually opting to increase rates by just 25 basis points, now ranging from 25 to 50 basis points, according to Chad Moutray, Ph.D. and Chief Economist at the Nation- al Association of Manufacturers. (NAM) Nonetheless, the Federal Reserve seemed positioned to do more at an upcoming meeting, including the next one on May 3–4. From the minutes: “Many participants noted that one or more 50 basis point increases in the target range could be appropriate at future meetings, particularly if inflation pressures remained elevated or intensified.” Recent speeches from Chair Pro Tempore Jerome H. Powell and Gov. Lael Brainard (who is awaiting confirma- tion as vice chair), as well as the FOMC’s economic projec- tions, lend further credence to a 50-basis-point hike at the May meeting, with aggressive increases also coming later this year. Those projections predict a federal funds target of 175 to 200 basis points at year’s end. Bond markets have taken note, with yields soaring last week. For a sign of the real impact of this on everyday Americans, the average 30-year fixed-rate mortgage for the week of March 31 was 4.67 percent, according to Fred- die Mac, the highest since the week of December 6, 2018. These rates are likely to move even higher over the com- ing weeks. Meanwhile, new orders for manufactured goods pulled back 0.5 percent from a record $544.7 billion in January to $542.0 billion in February. These >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48

Made with FlippingBook - professional solution for displaying marketing and sales documents online