Consumables

Caraustar Announces Price Increase on Uncoated Recycled Paperboard, Coated Recycled Paperboard and Uncoated Paperboard Converted Products

Wednesday 10. March 2010 - Caraustar Industries, Inc. announced today that it will increase prices by $60 per ton on all uncoated recycled paperboard grades and $45 per ton on coated recycled paperboard grades produced by its mills.

The increases are effective with shipments on and after April 5, 2010. Caraustar will also increase prices of tubes and cores and all other uncoated recycled paperboard converted products on the same date. This series of price increase announcements comes shortly following earlier increase announcements.

Greg A. Bartlett, vice president sales and marketing for Caraustar’s Mill Group, stated, “Publication prices for Old Corrugated Containers (OCC) have reached an average of $170 per ton in the middle and eastern United States, up $95 per ton since December publications. Unreliability of supply has forced us to reach out further with higher cost freight lanes and pay significant premiums over publication list prices to secure our recovered fiber needs. Fiber quality has also declined during this period, impacting our yield of our most important raw material. Prices for all fiber grades have increased significantly. We understand the impact that this has on our customers; however, we cannot continue to absorb these costs. We will be vigilant in monitoring this situation and keep our customers informed of changes and challenges in this volatile recovered fiber market.”