Truist sees boxboard hike as potential positive for GPK, Clearwater, Smurfit

Truist analyst Michael Roxland notes that Fastmarkets RISI reported that Graphic Packaging (GPK) announced a $60/ton price increase on bleached and unbleached boxboard effective June 8. While the firm believes it will be difficult to increase Solid Bleached Sulfate prices, any successful SBS and/or Coated Unbleached Kraft price implementation would be positive for Graphic Packaging, Clearwater Paper (CLW), and Smurfit Westrock (SW). Truist acknowledges that the company did not provide a rationale for the increase, but believes it is likely to be due to rising input costs, stable to better demand in CUK ahead of the beverage season, and an effort to recover a portion of the SBS pricing lost late last year and stem substrate switching from CRB. That said, the firm thinks Graphic Packaging will face difficulty in implementing the SBS increase due to oversupply.