International Paper Margins Squeezed by Double-Digit Pulp Cost Increases and Weak Box Demand
IP•International Paper faces pulp cost increases and freight surcharges from war-related disruptions, but corrugated box orders have declined on tepid industrial and retail demand. This imbalance is pressuring operating margins and postponing planned price increases.
1. Rising War-Driven Input Costs
International Paper has seen its pulp input costs climb due to conflict-related supply disruptions, with additional freight surcharges adding pressure to its raw-material expense base.
2. Tepid Corrugated Box Demand
Demand for corrugated packaging remains subdued, with industrial and retail end-market orders falling in low-single-digit percentages, limiting volume growth.
3. Margin Squeeze and Price Pass-Through
The mismatch between higher input expenses and weak volumes has constrained IP’s ability to implement surcharge pass-throughs, compressing operating margins and delaying planned price increases.
