2006 Top Tag and Label Converters

Top Tag and label Converters were announced as
1- RRDonneeny
2-Avery Dennison (Fasson)
3-CCL Industries
4-WS Packaging Group
5-Multi-Color Corp
6-Fort Dearborn Co
7-Standard Register
8-Alcan Packaging Label Group
9-Nashua Corp
10-Spear Mason
11-MPI Label Systems
12-Hammer Packaging
13-Weber Marking Systems
Paper.com has Tags and Labels and nearly 20,000 other paper items on site.

Loparex acquires Douglas-Hanson

Two large coaters will combine forces, according to a news release.
Loparex Group, a manufacturer of release coated papers and films, has acquired the Douglas-Hanson Company of Hammond, WI, USA. Douglas-Hanson, established in 1973, manufactures silicone-coated release papers and films, and extrudes polycoated papers for the packaging industry. The Douglas-Hanson facility will operate under the name Loparex Inc., whose headquarters is in Willowbrook, IL.

Nashua Buys Tec Print

Nashua Corporation, a manufacturer of labels and thermal and specialty papers based in Nashua, NH, USA, has announced its acquisition of 35 percent of the shares of Tec Print LLC, a minority-owned business enterprise located in Memphis, TN.

Tec Print is a minority owned printer of lottery tickets and labels. The company also has the capability of printing paper rolls, tickets, brochures, business cards, posters, and signs.

Paper.com has tags, tickets, and labels, in stock and ready for immediate delivery.

Pulp Price Still Increasing....again

Producers of market pulp appear to remain aggressive with price increases. All producers implemented a $30/mton price increase for NBSK for July yielding a 'list' price of $750/mton. The cost pressure on nonintegrated paper mills (mills that do not produce their own pulp) continues to mount. Stand by for yet another increase in the Fall.

Coated Free Prices firming up

Prices increased $50.00/ton on #3 - 60lbs rolls of coated paper in July. This grade is used for high-end magazines and catalogues for luxury items. Demand has been steady thus far in 2006, and supply has decreased due to equipment closures.
International Paper completed the sale of their coated division to Apollo Management Group.
Paper.com has coated paper in both rolls and sheets, available and ready for shipment.

Uncoated Offset Prices - Increase .... again

Cut size - Paper used for copiers and desk top printers; witnessed yet another price increase in June and one is in the 'air' for September - of $60.00/ton. Supply reductions and somewhat better demand yielded an increase in shipments of 2.5%. To further a tightening in market - Brazil is not exporting as much to USA - neither is Europe.
Weyerhaeuser just announced price increase for Offset and Opaque grades - effective with August shipment - $60.00/ton.
BTW. Strong rumor that either Boise or Domtar will merge with Weyerhaeuser.
Paper.com has all of Weyerhaeuser's paper grades in both rolls and sheets, available and ready for shipment.

Uncoated Woodfree Market

The North American Wood Free Market, paper used for copy paper, books, and desk top printers, witnessed a decline in demand of 12.8% from a peak of 14.8million tons in 1999. Demand last year was 12.9million tons. The main reason sited was electronic communication and the sudden spike in price for this grade of paper. Many producers shuttered equipment - most notable Weyerhaeuser in 2 mills 280,000 tpy Prince Albert, Sask and 155,000 tpy in Dryden, ON; Also, Domtar, Glatfelter, and SMART all closed down production.
Top 5 North American Producers
International Paper 3,570M tpy 24.6% mkt shr
Weyerhaeuser 2,650M tpy 18.3% mkt shr
Domtar 2,210M tpy 14.6% mkt shr
Boise Cascade 1,550M tpy 10.7% mkt shr
Glatfelter 755M tpy 5.2% mkt shr

Coated Free Sheet Market

The Coated Free Sheet Market, paper used for annual reports and high-end publications, is still suffering with poor demand, although the industry did announce a price increase earlier this year. The North American production capacity declined this year with many machines shuttered; such as 115,000 tons /Muskegon, MI (SAPPI); 170,000 tons /Pasadena, TX (Pasadena
Paper); 30,000 tons/Thunder Bay, ON (Cascade); 155,000 tons-Ottawa & Cornwall, ON (Domtar). To boot, several European manufactures also shut equipment down and USA ran at only 88% operating rate.
Top 5 North American Producers-
SAPPI 1,400M tpy 22.3% mkt shr
NewPage 1,280M tpy 20.4% mkt shr
International Paper 1,100M tpy 17.4% mkt shr
Stora Enso 915M tpy 14.5% mkt shr
Domtar 390M tpy 6.2% mkt shr

Coated Groundwood Market

The coated Groundwood paper grade - the paper used in magazines and catalogues, is still very depressed and deep discounts are often offered to buyers. North American production capacity for 2005 was 6.55million tpy and capacity is forecasted to decline to 6.25million this year. The USPS forecasted price increase for January will further hurt this market.
Top 5 producers in North American-
International Paper 1,160M tpy 18.9% mkt shr
NewPage 880M tpy 15.3% mkt shr
UPM 880M tpy 15.3% mkt shr
Bowater 865M tpy 14.0% mkt shr
Stora Enso 860M tpy 12.5% mkt shr

Smart Paper Still Operating as Bankrupt

SMART paper continues to operate under a chapter 11 status as we previously reported. Although the Ohio mill remains open, the Wisconsin mill has been shut down, hoping that CellMark will purchase and reopen. Fraser Paper, the operator that originally sold the Park Falls, Wisconsin mill to SMART is worried. They own a 40% stake in SMART ($75million) and $14million due them on pulp sales and asset rental. Fraser also made certain financial guarantees amounting to $8million when it sold the mill to SMART in 2005.

Shuttered Flambeau Paper Mill finds Buyer

The management group of CellMark recently announced their intent to purchase the Flambeau Paper mill in Wisconsin. This mill was shut down in March as a result of the current owner, SMART Paper, chapter 11 financial status. CellMark, together with Johnson Timber Company will buy the mill and CellMark would market the output. New mill will be called Flambeau River Papers. If successful, the mill would start back up in late this summer.