Shares of major paper and packaging producers sold off on Monday after a surprisingly weak containerboard pricing update. International Paper (NYSE:IP) slid 7.1%, Packaging Corp of America (NYSE:PKG) lost 6.8%, and U.S.-listed shares of Smurfit Westrock (NYSE:SW) retreated nearly 5% in the wake of the pricing news.
According to comments from Stifel, the declines followed the latest packaging paper and board price data for February released on Friday by index provider RISI. The new figures showed an unanticipated drop in containerboard prices, which pressured sentiment across the sector.