By Ryan Dezember

A new year is approaching, and so is another cardboard price hike.

As they did late last year, big corrugated-cardboard producers are announcing that they will raise prices in January, according to an industry publication. Higher prices are usually a sign of broad economic strength since most goods and many industrial parts are shipped in what box makers call container board.

Packaging Corp. of America, which last month reported surprisingly strong box demand, told customers earlier this week that it would raise prices, according to Fastmarkets RISI's PPI Pulp & Paper Week. International Paper and closely held Georgia Pacific have followed with increases of similar magnitude.

Packaging Corp.'s shares are at an all-time high while International Paper's stock is trading close to its record high set in 2018.

Though cardboard demand has been rising, persistently high input costs, such as for old boxes that are recycled into new cardboard, are probably also a factor in the planned price increases, said Truist Securities analyst Michael Roxland.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

November 22, 2024 15:15 ET (20:15 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.