Sector Snap: Containerboard makers surging

NEW YORK - China's announcement Monday that it will delay construction of a huge containerboard plant, along with a broader stock market surge, lifted shares of U.S. containerboard makers. Nine Dragons Paper Holdings, the largest Chinese maker of containerboard, is delaying construction of 1.6 million metric tons planned for 2009, according to Citi Investment Research analyst Chip Dillon. Containerboard is used to make cardboard boxes. Both Nine Dragons and Lee & Man Paper "appear to be capital constrained after years of building capacity at a breakneck pace," Dillon wrote in a client note. "These producers have access to little indigenous virgin... [read full story]