Wednesday, December 21, 2005

Price Increases on tap for Most Paper and Pulp grades

-Packaging grades have experienced substantial supply closure and strong demand
-Operating rates 95.4%
-Price increases have been announced for beginning of New Year
-Printing and Writing demand is even to slightly down compare to 2004; depending on grade
-Price increases for all uncoated grades but copy papers, has been announced for New Year
-A lot of resistance witnessed from end users - although costs for producers have certainly increased
-Newsprint demand continues its trend downward
-Many machines manufacturing newsprint have either been closed or modified to produce high bright grades
Pulp demand has decreased, consistent with paper manufacturing equipment closures
-Many pulp mills have been shuttered
-Pulp producers have announced a January price increase of $20/ton
-Meanwhile, I wonder if producers are able to charge current established prices.
-Northern Bleached Softwood (NBSK) announced price from $640 to $660

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