KS Paper/Packaging names -- KS, IP, RKT, PKG, UFS -- continue lower into afternoon trade, Deutsche Bank comments on price dips (25.50 -1.40)
Deutsche Bank notes the kraftliner and semichemical drop in pricing by $10 and $20, respectively. The firm also notes any impact on national box contracts is apt to be limited, but likely has some impact on regional box and cboard prices. Overall the impact is expected to be modest, though firm expects pressure on the group today. The news is incrementally negative for an industry where many investors are laser focused on pricing power, but it does appear that weakness is isolated to CA and is somewhat backward looking. However, most integrated producers are not significantly exposed to medium and the West Coast kraftliner reduction should add caution both to current producers and to any potential new supply.
Shares of KS -5.22%, IP -3.70%, PKG -3.22%, RKT -3.20%, UFS -3.19% all trade lower today
