Capacity retirements and mill disruptions continue to tighten the containerboard market, prompting a third price increase in North America this year.
Packaging Corporation of America (PCA) has announced a $140 per ton increase in containerboard prices, effective September 1, 2026, reflecting tightening supply conditions across the North American market.
The latest increase marks the third containerboard price hike in 2026. If fully implemented, linerboard prices will have increased by a cumulative $240 per ton within seven months, representing one of the fastest price escalations seen in the industry’s recent history.
According to market intelligence reported by Fastmarkets, the supply situation has tightened following the retirement of approximately 3.9 million tons of containerboard production capacity between February 2025 and March 2026. Additional pressure has come from temporary mill disruptions, including the shutdown of International Paper’s Pine Hill, Alabama, containerboard mill, further limiting available supply.
Industry participants have indicated that reduced production capacity and ongoing operational challenges have strengthened the market, with some buyers already reporting extended delivery schedules for containerboard orders.
During the company’s recent earnings call, PCA described market conditions as “tight” and noted that previously announced containerboard price increases are continuing to flow through the market. The company also confirmed that higher containerboard costs are contributing to increased corrugated box pricing.
PCA is the third-largest corrugated box producer in North America, following International Paper and Smurfit Westrock. The latest pricing announcement is expected to influence packaging manufacturers, converters, and customers across the corrugated packaging supply chain as the industry continues to navigate constrained supply and rising production costs.
