Paper mills started sending notices of a $50/ton paper increase to converting plants several weeks ago. Many increases will start taking effect March 1st with the possibility that all mills may increase by the end of March. Most convertors are increasing their prices 5-6% effective with shipments starting April 1st. Paper continues to be tight, with lead times from the paper mills on high performance sheets running 5-6 weeks and regular kraft sheets running 3-4 weeks. Lead times at converting plants are running 1-2 weeks additional since their production is limited these days due to the availability of paper. Demand for valve bags is running 10 weeks or longer due to early buying by the concrete industry. Corrugated products could see an increase by the end of March.
Resin prices have softened, and there have been some decreases since the first of the year. This market is expected to continue for the next 30 days. The rising cost of oil continues to drive up the price of resin overseas, and likewise the cost of any packaging that contains polypropylene or polyethylene. Since this time last year, the price of woven products from overseas have increased 12-15%. The increase in the world price of resin and the devalued US dollar against other currencies will eventually drive poly prices back up in the US as export demand increases.
The US Department of Commerce announced their findings at the end of January on the issue of the alleged dumping of laminated packaging from China. They have determined that Chinese producers are dumping laminated woven sacks into the US market and have recommended increased duties for these products. They have announced preliminary duties on these imported goods of 63.89% to 108.09%, depending upon the extent the company in China was found to be in violation.
