The Rising Costs of Wood Pulp

Due to the boom in online ordering there’s been an increase in demand for cardboard boxes, as well as comics, and books, and everything paper. When we take a closer look at cardboard boxes we see that they are made of wood pulp, which is the same thing used for paper. The cost of wood pulp increased for 25% in 2017 to last year and has now rocketed again this year by another 15%. Further rises are expected. Specifically, pulp prices have increased by over $250 per tonne year-to-date. Not only are wood pulp costs up, but so are mill costs, fuel costs, and energy costs.

 

The Rising Costs of Paper correlated with Rising Costs of Cardboard

However, paper prices have not risen much in the last three decades. Not only have prices for paper not increased, but also paper manufacturing capacity in the US with major printing mills have reduced production levels or even gone out of business. This lack of increase in price, with a decrease in supply, and an increase in demand has inevitably led to the skyrocketing costs of paper and also cardboard. Remaining paper mills have implemented price increases for newsprint, coated and uncoated grades since the beginning of the year. It’s with the beginning of 2021 that prices for all grades of paper has started increasing. Lead times on paper orders have increased and quick-turn paper orders are increasingly rejected. Independent of the paper grade dramatic increases are happening across the board. For example, after their $40/tonne (45g) increase in January and February, newsprint mills are implementing another price increase of $50/tonne (45gr), split between April 1 and May 1 effective starting dates. Furthermore, newsprint mills are reporting full paper machines thus far in 2021.

 

Where to get cheaper boxes?

While the world responds to the dramatic increase in cardboard demands by creating new paper mills, sourcing new energy, and increasing the supply it is important to remember it is still possible to get affordable cardboard boxes. Leader Box Corporation has unbeatable prices for gently used boxes. Not only is it the green way, but it is also the affordable way in a price skyrocketing market that Amazon cannot even keep up with. Leader Box Corporation sells and buys packaging supplies for your use. Leader Box Corp. serves the Chicagoland area and other major cities in the Midwest. Choose to save money and the environment by buying boxes from Leader Box Corp.