Uncoated Papers Finally Enjoy Strength

The year 2005 was not kind to uncoated printing and business/ copy papers. Demand continued to shrink, losing ground to electronic communication, imports, and high bright groundwood grades. The market attempted several unsuccessful price increases, inspite of the producers managing supply through curtailing equipment. Shipments for 2005 were off 4% versus 2004. The start of 2006 tells a different story. Both rolls and cut sheets will increase in price. International Paper and Weyerhaeuser (#1 and #2) with 45% of the market share are standing firm on this increase and #3-Domtar has also announced a price increase.