Sonoco and Caraustar Industries have both announced price increases for their paperboard tubes and cores, citing higher costs for raw materials. Sonoco’s vice president, global tubes and cores, Adam Wood, said: “The price increase is necessary due to the recent increase in the price of our primary raw material, uncoated recycled paperboard (URB). This URB price increase, combined with continued rising operating and other raw material costs, has put pressures on Sonoco which we cannot absorb.”
Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, textiles, plastic films, tape and specialty industries
Caraustar Industries announced that prices on its paper tube, core and protective packaging product lines will increase by at least 6%. The company says the increase is required to recover escalating costs, including paperboard, other raw materials and labor and benefits.
Only days before announcing the price hike for tubes and cores, Sonoco stated that it would raise the price for all grades of uncoated recycled paperboard (URB) products by $45 per ton, effective with shipments in the United States and Canada beginning August 31, 2015.
“The price increase is driven by recent increases in costs for recovered paper, chemicals and other operating costs,” said Palace Stepps, director of sales and marketing for Sonoco’s North America paper business.