Uncoated Paper Producers looking at September Increase

The uncoated paper manufacturers are beginning to introduce to their end users the potential of a September price increase. The industry confirmed a price increase of $3.00/cwt - $60.00/ton for June and are forecasted to increase another $60.00/ton in September. The increase is justified due to increased pulp-energy-chemical costs; all important components to paper production. The market continues to be tight in supply and operating rates are in excess of 95%. Mills most likely
to benefit with increased prices include - International Paper; Weyerhaeuser, and Domtar.

Finch Paper up for Sale

The Board of Directors for Finch Paper has announced the decision to solicit offers to find a buyer for the mill. The board feels this is in the best interests of the shareholders to begin to evaluate potential offers for purchase of its paper mill and associated facilities.

International Paper sells Kraft Mill

International Paper announced the sale of its kraft paper business to Stone Arcade. The division was sold for $155million.

Pulp Pricce Still Increasing

NBSK market pulp pricing is now $725/ton in USA. This price has risen very aggressively since September when list price was $620/ton. Many producers are beginning to announce yet another increased of $20-30/ton for July shipments. Over 2million tons of market pulp production was curtailed during 2005. Clearly, this is a seller's market! Uncoated paper producers will most likely also announce an increase given this new cost pressure.

Typical Internet Buyer

Stats per Internet Retailer Magazine-
-2001-05 internet growth in sales 26%/year
-typical internet buyer 44yrs/female/$68,000household income/college edu/$360 ave order
-Over 100million USA adults have broadband at home
-2006F 175million USA adults will buy 'something' on line (up from 164million 2005A)
-This equates to 77% of adults
Paper.com has grown to include nearly 20,000 paper items. The site is available for paper purchases 24/7.

Top USA Paper Mills

Top North American Paper Mills, by total 2005 revenue are as follows-
1-International Paper $24.1billion 15,900,000 tpa
2-Weyerhaeuser Paper $22,630billion 13,900,000tpa
3-Georgia-Pacific $18,700billion 8,600,000tpa
4-Smurfit-Stone $8,400billion 8,190,000tpa
5-MeadWestvaco $6,170billion 3,560,000tpa
6-Boise Cascade $5,907billion 2,627,000tpa
7-Temple Inland $4,888billion 3,202,000tpa
8-Abitibi-Consolidated $4,568billion 6,100,000tpa
9-Domtar $4,249billion 3,144,000tpa
10-Sonoco $3,529billion 2,000,000tpa

National Envelope Acquires another Converter

National Envelope Company recently acquired Atlantic Envelope. This transaction gives National Envelope 6 more plants and end users such as FEDEX and Netflix. National Envelope now operates 22 USA plants.

Smart Paper Still in Chapter 11

The Smart Paper Mill, located in Hamilton, Ohio continues to run its operations under chapter 11. They recently announced the shut down of the Park Falls, WI mill (Smart purchased from Fraser FEB 2005). Smart Paper will be producing many of the grades manufactured in Wisconsin at its Ohio site.
Paper.com has the complete line of Smart Paper grades available and ready for immediate shipment.

Domtar Mill is Shut Down

The Domtar mill in Vangouver, BC has officially been shuttered. This mill produced 120,000 tpy of coated free sheet.

Magazine Ad Revenue Holds Steady in May 2006

Total magazine advertising revenue for the month of May increased 0.9%, closing at $2.2 billion, according to the Publishers Information Bureau. Ad pages fell 2.3% for the month, totaling 22,607. Year-to-date revenue for the category grew 3.6% over the same period in 2005, to $9.2 billion, while ad pages remained flat against the prior year at 94,358.
As goes magazine advertising pages ..... goes page count ... goes paper consumption.

Coated Paper Producers announce Price Increase

International Paper informed their customers that its coated and SC (Supercalendered) publications papers will increase by $2.00/cwt or $40/ton. To date, no other mill has matched this announcement on publication grades.
Other mills that announced a price increase on free sheet coated papers include SAPPI, Domtar, Appleton, and Stora Enso- all told their end users coated free sheet text and cover grades will increase by $2.00/cwt or $40/ton.
Paper.com has papers from all of these mills.

Greenpeace Evaluates Recycled Papers

Greenpeace released the results of their current survey on environmentally friendly papers. They polled people in both the USA and Canada-
-80% of Canadians and 75% of Americans are likely to purchase papers that are recycled
-71% of Canadians and 66% of Americans state they are less likely to buy from companies that cut down 'old forests' for there
source of wood fiber.
-86% of Canadians and 77% of Americans will buy recycled papers, if given the choice.
-7 of 10 Canadians and 66% of Americans would be willing to pay 5% more for recycled paper.
Paper.com has over 18,000 papers - many are recycled.

Paper.com is one of the World’s Largest Paper Websites ranks in top 500 on largest USA websites

Paper.com is in its third year of operations and has witnessed robust growth in sales. Paper.com has nearly 20,000 paper products – representing paper grades for the office, scrapbookers, schools, restaurants, weddings, and printers. The website has over 30 vendor warehouses throughout the United States and ships within 24 hours after receipt of order – from a single sheet of paper to multi truckloads. The site now enjoys nearly 8000 unique visitors every day clicking onto www.paper.com

The company has recently made the list of top 500 internet sites as confirmed in the 2006 survey by Internet Retail Magazine. The company was also ranked #60 for Specialty Retailers in USA.

Paper.com moves into new headquarters and hires a Marketing Manager

P. Scott Vallely, a paper industry executive; and John Engel, an expert in web design and internet marketing teamed up to form Paper.com three years ago. The company has been growing and recently moved into newly renovated corporate headquarters located in New Canaan, Connecticut. To support this growth, they have hired Mr. Edward F. Lane Jr. to Market Manager. Mr. Lane has a deep history in internet marketing, having recently been with Colangelo and Suresource.com.

Weyerhaeuser Improves Cougar Opaque grade

Cougar's brilliant 98 brightness and 10 percent recycled content in a stunning blue-white shade makes the Cougar grade one of the finest opaques on the market.
The mill has now offers this grade with a smoother surface for better ink holdout and cleaner print uniformity, Cougar's high opacity and steadfast print quality is an excellent alternative to the higher priced Text and Cover sheets.

THE FUTURE OF LUNA - Domtar Mill in BC

Domtar has signed a non-binding letter of intent to sell their New Westminster, BC, coated paper mill to Belgravia Paper Company, which is associated with West Linn Paper Company.
The agreement has not been finalized yet, but under the terms of the letter of intent, the transaction would close in mid-June. As a result, Domtar will continue its plan to shut down the Vancouver mill
completely by June 16; coated paper production was discontinued on May 12th. Domtar Luna will continue to be sold until inventory is depleted.
Paper.com carries many of the popular Domtar paper items.

Some Coated Manufactures try for Increase

International Paper and Fraser Paper announced a $50/ton increases on coated magazine papers in North America for June shipments.
However, no other coated paper producers joined in on this increase announcement. Most buyers do not think this increase will go into effect.

Summary of Uncoated Wood Free Market

Summary from Analist at Deutsche Bank-
* Another round of uncoated free sheet price hikes-
Over the last week, virtually all producers of cut-size uncoated free sheet paper have announced the third round of price increases in 2006. If successful, these increases will take the list price of 20lb cut-size paper (“copier paper”) to $940/ton. This is an increase of $145/ton from the $795/ton average price back in December, and we think prices could move even higher.

* The biggest issue has been supply reductions in the US and Canada.-
Over the past 18 months, producers have closed mills with a combined capacity of 1,355,000 tons, just under 9% of the North American supply base. Even with prices rallying, the closure process does not appear complete. IP & Boise are converting another 540,000 tons away from UFS within the next year. Moreover, the pending sale or merger of Weyerhaeuser's white paper business may result in further capacity rationalization.

* Other issues include rising costs and foreign exchange. -
All white paper mills are vulnerable to higher chemical, energy and transportation costs. However, for nonintegrated white paper mills, the cost pressure is especially acute. Nonintegrated mills rely on purchased pulp and are much more reliant on purchased energy, both of which are up sharply in the last few years. Finally, a weak US$ is now working against an increase in white paper imports from abroad.

Uncoated Papers remain in Demand

All the major producers have announced $60/ton price increase on copy papers for June. Cut-sized (8 1/2x11) pricing has lagged behind the rebound in roll stock pricing. USA supply reductions (mills taking production out of the market) and modestly better demand have helped dynamics. Also, Brazilian suppliers remain focused on improved local demand, not on raising exports to US.
Weyerhaeuser continues to look for a buyer - maybe International Paper, Boise or Domtar. This will add further confusion
to the market.
Come to Paper.com for all your uncoated requirments.

Pulp Price increases might be Slowing

The market pulp producers announced a $30/ton increase for NBSK and it now appears many buyers are resisting this increase. The average price now paid for the NBSK is $705/ton - which is the highest level in 5 years.

Coated Paper still remains weak

The coated market (glossy magazine paper) continues to be in weak demand. The industry needs manufactures to curtail production just as the uncoated market has successfully done. Discounting is available for coated grades sold in rolls. Paper.com has over 18,000 items - many are coated papers.

Cascades sells its Merchant Group

Cascades, a large Canadian paper company, sold its merchant group known as Cascades Resources. This division was sold to Coast Paper which is a subsidiary of PaperlinX Ltd.

Newspaper Ciculation still on the Decline

The majority of USA newspapers report a decline in readership. The most recent period outlined a decline of 2.6%. Web companies such as Yahoo and Google are providing the information at a growing number -and - it's free. A residual effect includes a decline in paper demanded for the printing of newspapers. Many of these paper manufacturers are curtailing production or rebuilding machines to produce grades that are in demand. Most experts do not believe newspapers will see positive grow in the near term. Paper.com has newsprint available.

Wausau Paper Introduces new Digital Line

Wausau recently introduced a new line of Digital Papers called Exact Digital. The vendors, Kodak - NexPress 2100 and HP Indigo highly endorse this new sheet. Paper.com has Exact Digital available and ready for immediate shipment.

Wausau Paper Introduces new Digital Line

Wausau recently introduced a new line of Digital Papers called Exact Digital. The vendors, Kodak - NexPress 2100 and HP Indigo highly endorse this new sheet. Paper.com has Exact Digital available and ready for immediate shipment.

International Paper sells its Coated Division

International Paper announced it sold its coated paper division to Apollo Management for $1.4billion. The division had four mill locations - two in Maine, Michigan, and Minnesota. The mills produced 2 million tons of magazine and catalogue paper a year and 2005 revenue of $1.6billion.