Uncoated Price Increase .... again

Most of the industry is bracing for yet another price increase in June for Uncoated Woodfree papers. Many believe the copy papers will increase $60/ton ($3.00/cwt) and the roll and folio sheets will increase $40.00/ton ($2.00/cwt). The market demand appears to maintain a strong backlog and producer’s inventories have declined. The Weyerhaeuser announcement has created some fear; however, continued consolidation in the industry is needed

Market Pulp

Following from Deutsche Bank Market Research on Pulp-
MARKET PULP
Domestic pulp producers have announced $30-40/tonne price hikes for
May and June on NBSK; if implemented, list prices would go to
$720/tonne, the highest level in 10 years. Hardwood producers, led
by Lat. Am eucalyptus producers, are separately pursuing $20/tonne
hikes this month. BSK and BHK days/supply inventory both fell one
day in March to 28 and 35 days respectively. World shipments were
up 3.6% y/y in March, led by a surge in shipments outside of North
America, particularly on hardwood grades. GP has reportedly run-
down its NBHK inventories at Old Town, Maine, and Fraser Papers is
scheduled to close its NBHK mill May 6th. Tembec is the latest NBSK
producer to announce a mill closure; its 200K tpy Smooth Rock Falls
mill will close at the end of July.

Coated Board continues to Shrink

MeadWestvaco was the latest to announce removing production of 310,000 tpy of SBS capacity. Between Tembec, MeadWestvaco, and Domtar, almost 500,000 tons of capacity for this grade have been removed. Industry experts predict this grade will be in tight supply as a result and prices will increase.

Paper Industry continues to Plant Trees

The Paper Industry has planted more than three times the amount of trees it had harvested for the pulp and paper manufacture. Forests are growing - not disappearing. Today, there are more than 10 million more acres of forests is the USA than there were 15 years ago. Since 1965, the number of trees growing in USA has increased 39%.

Weyerhaeuser Reports alternatives to Fine Paper Business

The management team at Weyerhaeuser has announced it is considering alternatives to its fine paper business segment. The choices include a complete divesture of the uncoated paper assets. This is big news considering the dominant market position of this paper company.