Based on discussions with very reliable trade sources, DB expects privatelyheld
Longview Fibre to announce a $50/ton containerboard price hike to
customers this week. We believe the effective date to be March 1. As
Longview's owner, Brookfield Asset Management, is reportedly (Reuters)
pursuing a sale of the the company, they have a keen interest in maximizing
cashflows.
Although we believe other containerboard producers are likely to announce
similar initiatives, we think some of them could delay the implementation
until mid‐March. We also suspect that Longview and other
producers will attempt parallel price hikes on various grades of unbleached
kraft paper. Longview is the leading kraft paper producer in North America.
Mark Wilde
Research Analyst
(+1) 212 250‐5570
mark.wilde@db.com
Debbie Jones
Research Associate
(+1) 212 250‐2956
debbie.jones@db.com
Deutsche Bank Securities Inc.
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