Sonoco To Implement Price Increase for Core Board and Paperboard in Europe
Rhea-AI Summary
Sonoco (NYSE: SON) has announced a €60 per metric ton price increase for all grades of core board and paperboard in Europe, effective April 7, 2025. The price adjustment comes in response to two major challenges:
1. A general shortage of Old Corrugated Containers (OCC), the primary raw material in core board production, with rising prices in March and expected increases in April and beyond. The shortage is exacerbated by OCC exports from Europe tightening local supply.
2. Persistent high energy costs across Europe, with low gas storage levels and the need to replenish reserves over summer unlikely to support meaningful cost reductions.
Positive
- Price increase of €60/metric ton helps offset rising costs
- Company maintains pricing power in challenging market conditions
Negative
- Rising raw material (OCC) costs impacting margins
- Elevated energy costs with no near-term relief expected
- Low gas storage levels across Europe creating cost pressure
News Market Reaction 1 Alert
On the day this news was published, SON declined 0.53%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HARTSVILLE, S.C., March 27, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a global leader in high-value sustainable paper and metal packaging, today announced it is implementing a
According to Adam Wood, Vice President, Industrial Paper Products Europe, the pricing decision is driven by a general shortage of Old Corrugated Containers (OCC), the primary raw material in core board production, and elevated energy costs.
“OCC generation has been low across Europe which has resulted in rising prices in March, and we expect additional increases in April and beyond. This is compounded by OCC exports from Europe that continue to tighten local supply,” Wood said. “We were hopeful for energy price reductions as we entered spring to help offset the material inflation, but this is not materialising and with gas storage levels low across Europe, the need to replenish reserves over the summer is not likely to support a meaningful reduction. We have held out to support our customers as long as we can but must now pass on these rising costs.”
About Sonoco
Sonoco (NYSE: SON) is a global leader in high-value sustainable paper and metal packaging that serves some of the world’s best-known brands. Sonoco has approximately 28,000 employees working in 315 operations in 40 countries around the world. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America’s Most Trustworthy and Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com.
| Contact: | Roger Schrum |
| 843-339-6018 | |
| roger.schrum@sonoco.com |
FAQ
How much is Sonoco (SON) increasing its core board and paperboard prices in Europe?
What are the main factors driving Sonoco's (SON) price increase in Europe for 2025?
When will Sonoco's (SON) European price increase take effect?
Why is there a shortage of Old Corrugated Containers (OCC) affecting Sonoco (SON) in Europe?
