AICC, The Independent Packaging Association, is challenging the latest round of containerboard price increases announced by three major North American producers, arguing that current market conditions do not justify the proposed hikes.
Packaging Corporation of America (PCA) announced a $140-per-ton increase for linerboard and corrugating medium effective September 1, 2026. International Paper also announced an $80-per-ton increase effective September 1, while Smurfit Westrock announced a $100-per-ton adjustment. The three announcements were made within three days of one another.
The increases represent the third pricing round announced by major producers in five months. Two earlier increases of $50 per ton took effect on March 1 and June 1, although AICC said those adjustments have yet to be fully absorbed by the market.
Producers have pointed to inflation, fuel, labor and insurance costs, high operating rates and tight supply as reasons for the latest increases. AICC disputes that assessment, maintaining that current raw material costs, demand levels and broader economic indicators do not support another substantial adjustment.
The association also raised concerns about market concentration. PCA, International Paper and Smurfit Westrock account for an estimated 63% of containerboard and linerboard supply, according to AICC. PCA is approximately 95% vertically integrated and sells only a small share of its mill production on the open market, while International Paper and Smurfit Westrock remain major suppliers to independent converters.
AICC acknowledged reports that roughly 10% of mill capacity has been removed from the market over the past year. However, it noted that about half of the affected capacity had been dedicated exclusively to exports, while some other outages are temporary.
The association also pointed to subdued demand. It said box demand remains near 2016 levels, while OCC prices have changed little compared with the scale of the announced increases. AICC added that market indexes published by RISI and Bloomberg have diverged throughout the year.
Three containerboard price increases in a single year are unusual but not unprecedented. Similar patterns occurred in 1994 and 2010, although AICC said economic conditions were more volatile in those years and the combined increases were less substantial than those announced in 2026.
AICC said large initial announcements are often intended to test how much of an increase the market will accept. While recognizing that suppliers must operate profitably, the association warned that repeated increases could disproportionately affect independent box manufacturers and their long-term competitiveness.
AICC, The Independent Packaging Association, represents the interests of independent companies operating in the corrugated, folding carton and rigid box sectors.
