Carton Shipments Hit $7 Billion - Packaging-Online

Carton Shipments Hit $7 Billion
Oct 28, 2006
Official Board Markets

Folding carton shipments reached an estimated $7 billion and 4.4 million tons in the first three quarters of this year, the Paperboard Packaging Council (PPC) reports. When compared with the first three quarters of last year, shipments in dollars increased by 3.2 percent, while tons increased by 3.4 percent. So far this year remains one of the strongest years measured by year-over-year growth since 2000, the PPC states.

Monthly shipments in August and September show some signs of a softening market, as illustrated in the accompanying shipments chart. For the first time this year there is a clear downward trend in shipments. This is in line with RISI’s strong forecast for 2006 and its expectation that the market would slow some going into 2007.

Orders in August were high compared to September shipments, suggesting that some orders were pulled or sent to the warehouse as “make and hold” finished product until needed. A spike in finished goods inventory suggests that the latter is definitely happening. Orders remain strong in September at 5.9 percent year-over-year, which suggests that better shipment numbers (or further increases in the finished goods inventory) could occur in the fourth quarter.

Results cited are based on data from the PPC’s Market Flash program, which tracks folding carton shipments, orders and inventory flow monthly. Participants in this program are folding carton converters and represent a significant portion of the folding carton market. For more information on this program, contact Melissa Teates, director, Industry Information & Research, at mteates@ppcnet.org.