FINANCIAL ANALYSTS: Containerboard – Thoughts heading into the data tomorrow [KeyBanc]
excerpt from KeyBanc Capital Markets
The April U.S. containerboard and box data will be published tomorrow morning, and Fastmarkets RISI will publish its May pricing update on Friday evening. Thoughts below.
Based on what happened to U.S. OCC prices in May and the comments from the publicly-traded N.A. containerboard producers about their April demand trends, we don't expect much in the way of good news tomorrow. We expect box demand to be down and operating rates to remain at or near decadelows (we expect modestly better than the 86.4% rate in March). Given all the downtime that producers are taking, inventories should ...