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U.S. Containerboard Utilization Tops 94.5% as Boxboard Softens in Q3 2026
U.S. containerboard mills maintained operating rates above 94.5% in the third quarter of 2026, while boxboard utilization fell to 88.3%. The latest American Forest & Paper Association reports show contrasting production, trade and capacity trends across the two packaging segments.
By Paul Ploumis
Published: November 2, 2026
Reporting period: Q3 2026
Key Points
- Containerboard: Operating rates remained above 94.5% for the second consecutive quarter; production increased 2.7% from Q2.
- Trade: Containerboard imports rose 25%, while exports declined 11% quarter over quarter.
- Inventories: Mill stocks fell below 370,000 short tons, the lowest level since October 2024.
- Boxboard: Production increased 1% year over year, but utilization fell 1.5 percentage points to 88.3%.
- Recycled grades: Recycled Medium operated at 95.1%, while Uncoated Recycled Boxboard reached 95.6%.
MONTREAL (Scrap Monster): U.S. paperboard manufacturing showed contrasting results in the third quarter of 2026, with strong containerboard capacity utilization and softer overall boxboard operating rates, according to separate reports released by the American Forest & Paper Association (AF&PA).
Containerboard operating rates remained above 94.5% for the second consecutive quarter, while boxboard utilization declined to 88.3% despite a modest year-over-year production increase.
ScrapMonster Edge: Higher Containerboard Supply, Lower Mill Inventories
AF&PA reported an unusual combination during Q3: containerboard new supply increased 5.8% quarter over quarter to its highest level in six quarters, while mill inventories fell below 370,000 short tons, their lowest level since October 2024.
New supply includes domestic production, subtracts exports and adds imports. This means the increase reflects both manufacturing activity and changing trade flows, including a 25% rise in imports and an 11% decline in exports.
Industry takeaway: Higher new supply does not necessarily mean inventories are building. For recovered-paper suppliers and packaging producers, mill utilization, trade flows and inventory levels offer different measures of market conditions and should be assessed together.
Containerboard Operating Rates Remain Above 94.5%
The U.S. containerboard industry maintained operating rates above 94.5% for the second consecutive quarter. Year-to-date utilization was 2.5 percentage points higher than the corresponding period in 2025.
Third-quarter containerboard production increased 2.7% compared with Q2 2026.
Within the industry's four major grades, Recycled Medium recorded a 95.1% operating rate, more than four percentage points above its earlier year-to-date level.
Operating rates for linerboard grades and Semichemical Medium eased slightly from the previous quarter but remained in the mid-90% range.
Containerboard Imports Rise 25% as Exports Decline
Trade flows shifted during the quarter, with U.S. containerboard exports declining 11% from Q2 while imports increased 25%.
As a result, new supply, calculated as production minus exports plus imports, increased 5.8% quarter over quarter and reached its highest level in six quarters.
Despite the increase in new supply, containerboard mill inventories ended the quarter below 370,000 short tons for the first time since October 2024.
Boxboard Utilization Falls Despite Higher Production
The boxboard segment recorded a different operating trend. Total U.S. boxboard production increased 1% compared with Q3 2025, while its operating rate declined 1.5 percentage points to 88.3%.
Solid Bleached Boxboard production increased 4% compared with Q2 2025, according to AF&PA's reported comparison.
Uncoated Recycled Boxboard utilization reached 95.6%, up 2.2 percentage points from Q3 2025 and 2.1 points on a year-to-date basis.
Meanwhile, Unbleached Kraft and Coated Recycled Boxboard recorded an operating rate of 88.4%, down 0.6 percentage points year over year but up 1.1 points on a year-to-date basis.
The results underline the differing operating conditions across paperboard categories, with recycled grades also showing variation in capacity utilization.
Source: American Forest & Paper Association, Q3 2026 Containerboard Quarterly Report and Q3 2026 Boxboard Quarterly Report, released October 30, 2026.
