Sector Snap: Containerboard makers rise

Beneficiaries of the $55 per ton price increase include Packaging Corp. of America, Smurfit-Stone Container Corp. and Temple-Inland Inc., said Goldman Sachs analyst Richard Skidmore.

The success of this month's price increase means "producers can now turn their full attention to passing through the containerboard price increase to corrugated boxes. We estimate that producers will realize the full 10 percent to 11 percent box price increase," according to the analyst

The sector may also be benefiting from reduced production and lower inventory. Soleil Securities Group analyst Anna E. Torma said June containerboard mill production decreased sequentially by 5.5 percent and box shipments declined by 3.5 percent from year-ago levels on an average-weekly basis.

In morning trading, shares of Smurfit-Stone rose 12 cents, or 2.3 percent, to $5.29 and Temple-Inland rose 13 cents to $13.96.

AbitibiBowater Inc. surged 78 cents, or 9.6 percent, to $8.94 and Packaging Corp. of America slipped 14 cents to $25.20.