Sonoco To Implement Price Increase for Core Board and Paperboard in Europe
Sonoco (NYSE: SON) has announced a €60 per metric ton price increase for all grades of core board and paperboard in Europe, effective April 7, 2025. The price adjustment comes in response to two major challenges:
1. A general shortage of Old Corrugated Containers (OCC), the primary raw material in core board production, with rising prices in March and expected increases in April and beyond. The shortage is exacerbated by OCC exports from Europe tightening local supply.
2. Persistent high energy costs across Europe, with low gas storage levels and the need to replenish reserves over summer unlikely to support meaningful cost reductions.
Sonoco (NYSE: SON) ha annunciato un aumento di prezzo di €60 per tonnellata metrica per tutti i gradi di cartone ondulato e cartoncino in Europa, a partire dal 7 aprile 2025. L'aggiustamento dei prezzi è una risposta a due importanti sfide:
1. Una carenza generale di Contenitori di Cartone Ondulato Usati (OCC), la principale materia prima per la produzione di cartone ondulato, con un aumento dei prezzi a marzo e attesi ulteriori incrementi ad aprile e oltre. La carenza è aggravata dalle esportazioni di OCC dall'Europa, che riducono l'offerta locale.
2. Costi energetici persistentemente elevati in tutta Europa, con bassi livelli di stoccaggio di gas e la necessità di rifornire le riserve durante l'estate, che difficilmente supporteranno significative riduzioni dei costi.
Sonoco (NYSE: SON) ha anunciado un aumento de precio de €60 por tonelada métrica para todos los grados de cartón y papel en Europa, efectivo a partir del 7 de abril de 2025. Este ajuste de precio responde a dos importantes desafíos:
1. Una escasez general de Contenedores de Cartón Ondulado Usados (OCC), la principal materia prima en la producción de cartón, con precios en aumento en marzo y se esperan incrementos en abril y más allá. La escasez se ve agravada por las exportaciones de OCC desde Europa, que restringen el suministro local.
2. Costos energéticos persistentemente altos en toda Europa, con bajos niveles de almacenamiento de gas y la necesidad de reabastecer reservas durante el verano, lo que probablemente no apoyará reducciones significativas de costos.
Sonoco (NYSE: SON)는 2025년 4월 7일부터 유럽 내 모든 등급의 코어 보드 및 종이 보드에 대해 톤당 60유로의 가격 인상을 발표했습니다. 이 가격 조정은 두 가지 주요 도전에 대한 대응입니다:
1. 중고 골판지 상자(OCC)의 일반적인 부족, 코어 보드 생산의 주요 원자재로 3월에 가격이 상승하고 4월 이후에도 추가 인상이 예상됩니다. 이 부족은 유럽에서의 OCC 수출로 인해 지역 공급이 제한되는 상황을 악화시키고 있습니다.
2. 유럽 전역에서 지속적으로 높은 에너지 비용, 낮은 가스 저장 수준과 여름 동안 재고를 보충해야 할 필요성이 의미 있는 비용 절감을 지원하기 어려울 것으로 보입니다.
Sonoco (NYSE: SON) a annoncé une augmentation de prix de 60 € par tonne métrique pour toutes les catégories de carton ondulé et de papier en Europe, à compter du 7 avril 2025. Cet ajustement de prix répond à deux défis majeurs :
1. Une pénurie générale de Conteneurs de Carton Ondulé Usés (OCC), la principale matière première dans la production de carton ondulé, avec des prix en hausse en mars et des augmentations prévues en avril et au-delà. La pénurie est aggravée par les exportations d'OCC depuis l'Europe, ce qui resserre l'offre locale.
2. Des coûts énergétiques persistants et élevés à travers l'Europe, avec de faibles niveaux de stockage de gaz et la nécessité de reconstituer les réserves durant l'été, ce qui ne devrait pas permettre des réductions de coûts significatives.
Sonoco (NYSE: SON) hat eine Preiserhöhung von 60 € pro metrischer Tonne für alle Sorten von Kernpappe und Papier in Europa angekündigt, die am 7. April 2025 in Kraft tritt. Die Preisanpassung erfolgt als Reaktion auf zwei große Herausforderungen:
1. Ein allgemeiner Mangel an gebrauchten Wellpappenkartons (OCC), dem Hauptrohstoff für die Produktion von Kernpappe, mit steigenden Preisen im März und weiteren Erhöhungen im April und darüber hinaus. Der Mangel wird durch die Exporte von OCC aus Europa verschärft, die das lokale Angebot einschränken.
2. Ständig hohe Energiekosten in ganz Europa, mit niedrigen Gasspeicherständen und der Notwendigkeit, die Reserven im Sommer aufzufüllen, die voraussichtlich keine signifikanten Kostenreduktionen unterstützen werden.
- Price increase of €60/metric ton helps offset rising costs
- Company maintains pricing power in challenging market conditions
- Rising raw material (OCC) costs impacting margins
- Elevated energy costs with no near-term relief expected
- Low gas storage levels across Europe creating cost pressure
HARTSVILLE, S.C., March 27, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a global leader in high-value sustainable paper and metal packaging, today announced it is implementing a
According to Adam Wood, Vice President, Industrial Paper Products Europe, the pricing decision is driven by a general shortage of Old Corrugated Containers (OCC), the primary raw material in core board production, and elevated energy costs.
“OCC generation has been low across Europe which has resulted in rising prices in March, and we expect additional increases in April and beyond. This is compounded by OCC exports from Europe that continue to tighten local supply,” Wood said. “We were hopeful for energy price reductions as we entered spring to help offset the material inflation, but this is not materialising and with gas storage levels low across Europe, the need to replenish reserves over the summer is not likely to support a meaningful reduction. We have held out to support our customers as long as we can but must now pass on these rising costs.”
About Sonoco
Sonoco (NYSE: SON) is a global leader in high-value sustainable paper and metal packaging that serves some of the world’s best-known brands. Sonoco has approximately 28,000 employees working in 315 operations in 40 countries around the world. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America’s Most Trustworthy and Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com.
| Contact: | Roger Schrum |
| 843-339-6018 | |
| roger.schrum@sonoco.com |
FAQ
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