Wednesday, August 17, 2005
Paper Pricing Still Soft
Although Paper.com primarily markets value added papers to both businesses and consumers, we also have a wholesale business which silicates large volume end users of commodity papers. While the higher quality papers have witnessed insulated, and level pricing; the commodity sector has been under constant pressure. Even with strikes curtailing massive amounts of supply (Strike: coated paper mills in Finland and UPM/Kymmene's coated paper mill in Miramichi, Canada) AND all producers desperate to increase pricing AND consolidation as well as machine shutdowns AND a slight up tick in print buying - there still exists a softness in pricing. For uncoated free sheet - all the price increase announcements released earlier in the year have been rescinded. Coated Free Sheet and Groundwood remain sloppy and price forecasters outline limited support for price increases throughout balance of year.
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