Sustainable packaging solutions provider Sonoco Products Company has announced a price increase for its core board and paperboard in Europe.
Effective 7 April 2025, the company will raise prices by €60 ($64) per tonne across all grades.
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This decision to adjust pricing has been attributed to a shortage of old corrugated containers (OCCs), which are the primary raw material for core board production.
Additionally, elevated energy costs have contributed to the necessity of the price change, according to the company.
Sonoco Europe Industrial Paper Products vice-president Adam Wood said that the price hike is necessary to manage the impact of these supply and cost pressures.
Wood said: “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.
“We were hopeful for energy price reductions as we entered spring [early 2025] 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 [mid-year period] 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.”
With nearly 28,000 employees across 315 operations in 40 countries, Sonoco provides its paper and metal packaging solutions globally.
Earlier this month, the company announced a $70 per tonne price increase for all uncoated recycled paperboard grades in the US and Canada.
The company confirmed that this new pricing will apply to shipments starting from 10 April 2025.
Additionally, Sonoco has opted to increase prices for all converted paperboard products by a minimum of 8%, starting with shipments on or after 15 April 2025.
