‘Surprise’ price drop negative for U.S. box makers, says JPMorgan

JPMorgan says the “surprise” price decline in U.S. linerboard is negative for Smurfit Westrock (SW), Packaging Corp. (PKG), and International Paper (IP), the U.S. box makers. After the market closed on Friday, RISI reported that domestic containerboard prices had declined by $20 per ton month over month, the analyst tells investors in a research note. JPMorgan says this contrasts to the majority of U.S. corrugated producers announcing a $70 per ton price increase and consensus expectations of $40-$50 per ton. The decline has been driven by sluggish demand conditions, some discounting, and increased imports of European containerboard, says the firm.