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In a notable development for the paper recycling industry, Greif Inc., a leading provider of industrial packaging products and services, has announced an increase in the prices of uncoated recycled paperboard (URB) by $40 to $70 per short ton. This adjustment is applicable to all grades of URB produced by the company. In addition, Greif has declared a minimum of 6 percent price hike on all its tube, core, and protective packaging products. These changes are set to impact new orders and shipments of URB immediately, with the price adjustments for tube, core, and protective packaging products following a week later.

The decision to raise prices comes in the wake of escalating costs for raw materials, energy, labor, transportation, and maintenance, coupled with a surge in demand across Greif's paperboard network. Greif's paperboard mills, several of which utilize recycled content and were part of the company's acquisition of Caraustar in early 2019, rely heavily on old corrugated containers and other recovered paper grades as raw materials. The increase in URB prices is a direct response to these rising operational expenses and the growing market demand for recycled paperboard.

Furthermore, the subsequent price increase for tube, core, and protective packaging products is directly linked to the hike in URB costs, given that URB constitutes the primary raw material for these items. This move indicates a broader trend of rising costs within the recycled paperboard industry, reflecting both the challenges and growth opportunities within the sector.

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According to Procurement Resource, Greif Inc. announces a significant price increase for uncoated recycled paperboard (URB) and related products due to rising costs and demand. Prices for all URB grades will rise by $40 to $70 per short ton, with a minimum 6% hike on tube, core, and protective packaging. This move reflects the impact of higher raw material, energy, labor, and transportation expenses on the recycling and packaging industry, indicating a positive outlook for recycled paper markets.