Current Containerboard Market Conditions In North America: Part 2
Containerboard & Supply Chain Impact
December was a solid month with record-breaking sales for many manufacturers and their supply chains, despite it being the month with the fewest invoicing days. Having said this, containerboard mills were true to their word and increased operating rates. In December, our recycle paper mill, Greenpac, ran 24/7 for all 31 days in an attempt to reduce the paper shortage. However, demand remained high, too high to have an impact on the current situation and we continue to see long extended lead times.
We believe this situation will remain until the summer months and are anticipating another price increase to come into effect in the spring.
Corrugator plants, such as our sheet feeder plant Tencorr, continue to run with its hands tied. Scheduling based on what paper arrives for the week and shipping out as quickly as possible.
As the next link in the supply chain, we at Royal Containers, continue to run orders as soon as we receive materials, but our lead times remain very long.
despite it being the month with the fewest invoicing days. We are strategic in scheduling production and communication with our customers is the top priority. Our manufacturing sites in Brampton and London are operational 24/7 with the best talent in the industry.
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