Corrugating medium: limited capacity growth, box demand to keep supply tight

Corrugating medium paperboard is made from recycled fiber and semichemical pulp, which should not contain more than 25% recycled fiber. The standard sheet weight is 26 lbs per 1,000 square feet and accounts for 62% of production, a decrease from 80% of production in the 1970s. Shipments of corrugated boxes increased 5.4% in 1993, but production increased only 2.4% because many paper mills reduced their inventories. Prices of corrugating medium had a low price of $270/ton in the 3d qtr 1993, but are expected to be $415-$425/ton in October 1994.
GRADE STRUCTURE. Corrugating medium, the middle fluting material used in corrugated containers, is made from both semichemical pulp and recycled fiber. Semichemical medium is not supposed to contain more than [...]