Weyco wants board hike.

Official Board Markets, October, 2006

Weyerhaeuser, Federal Way, Wash., has begun to inform customers of a $40 a ton containerboard price hike, effective January 1, reports Mark Wilde, paper industry analyst for Deutsche Bank, New York City. He questions whether or not it will stick, pointing out that producers typically announce increases for late winter/early spring when the market is seasonally stronger.

He believes Weyerhaeuser might be doing this to try to shore-up the market against prospective price erosion in the upcoming seasonally slow period (late November through mid-February). Or it could be in connection with shareholder pressure to improve returns.