Friday, June 30, 2006

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.

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