Paper industry has been dynamic the past 24 months. 2004 ended and 2005 begun with a very strong paper market. As 2005 progressed, pricing decreased - in spite of rising raw material (fiber, energy, chemicals, transportation) and today, the uncoated market is beginning to once again announce price increases.
First half of this year-
-Uncoated free sheet pricing increased 10%
-But demand now down - electronic and high bright groundwood grade substitution
- Offset by equipment curtailment
-Coated magazine paper prices increased nearly 20%
-Finland and Canadian strikes curtailed supply
-Newsprint prices rose 10%
-Newsprint capacity decreased 1million tons (capacity now 13.4millin tons)
-Kraft Linerboard increased 15%
-Super calendar paper -insert paper used fore advertisements - increased 12%
Plus additional $40/ton increase announced in July
-Pulp prices jumped to $680/ton (highest level of NBSK since JAN2001 - $710/ton)
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