Printers Voice Concerns for 2006

A recent report confirmed that the #1 concern USA printers face for 2006 was raising paper costs. The cost of paper now seats at 22% as a percent of total sales and once all material are factored in, this equates to 35% of sales. Paper has increased over 5% so far this year, while prepress consumables, plates and ink have all gone up 4%. Other concerns cited include competition & pricing; labor & staffing; energy costs; and health insurance.
Paper.com has over 15,000 paper items for commercial printers, available for immediate shipment.

SC market remains Firm

Supercalendar Paper (SC) – the type used in Newspaper advertising supplements and several low-end magazines and catalogues, remains snug. The industry was successful in introducing a price increase – increasing the bell weather grade from $700 to $780 per ton. Although demand is off, supply has been curtained – Port Hawkesbury, Nova Scotia – StoraEnso had labor shutdown – resulting in over 380,000 tons and cost pressure coupled with low advertising demand have forced publishers to substitute coated paper for the more economical SC grade.
Total 2006YTD North America demand is 2,200,000 tons.

International Paper Sells another Division

International Paper has signed a definitive agreement to sell its Brazilian coated papers business to Stora Enso for approximately $415 million, subject to certain post-closing adjustments. The business includes a coated paper mill and lumber mill in Arapoti, Parana State, Brazil

More Paper price Increases

Weyerhaeuser and Boise have recently confirmed a price increase for September shipments. Most uncoated paper producers will follow. This increase will affect printing and office papers as well as opaque grades. While demand has been relatively steady, 1.7million tons of North American capacity has been shut down and therefore, supply has become tight. Imports are rising, but are less than 3% of our demands.

Weyerhaeuser Paper to Merge with Domtar Paper

Weyerhaeuser Paper agreed to merge with Domtar in a $3.3billion transaction. Weyerhaeuser shareholders will enjoy a 55% stake in the new company and Weyerhaeuser will also receive $1.35billion cash payment as part of the deal. Weyerhaeuser will transfer all 10 pulp and paper mills. Domtar’s Raymond Royer will act as CEO.
Paper.com has both Weyerhaeuser and Domtar grades readily available. Please visit www.paper.com

SMART Papers finally Obtains Financing

SMART Papers, located in Hamilton, Ohio, was successful in confirming a new round of financing. The mill has been under bankruptcy protection, citing poor cash flow due to
high energy, fiber, and chemical costs. Plainfield Asset Management will take control
of SMART Papers and assume the $40million of debt. The VC will provide an additional $10million for interim financing.
Paper.com has all the SMART Paper grades, including Kromekote, in stock and ready for immediate shipment.

Brighter, Whiter Trend for White Papers

All the leading companies are now marketing their white papers as ‘brighter and whiter’. If fact nearly all office papers are now boosting a brightness level of 92 -- up from 84.
The addition of fluorescent whitener greatly assisted (much like what laundry detergents do to make cloths ‘look’ whiter). Brightness has been measured on a scale of 1-100 – the higher the number the brighter the sheet. However, there are two units of measurement – in USA – The TAPPI system is used while in Europe the ISO system is reported AND these two systems are NOT interchangeable because of different instruments used.
Whiteness (as apposed to Brightness) is now the specification of choice. Both USA and Europe use the CIE whiteness scale. The results are often expressed with 3 results – L; a; and b - and reflect the color or whiteness scale from red to blue to green (which matches what the human perceives).
Although consumers will nearly always pick the brighter, whiter sheet – it comes with a cost – both economically and ecologically. Clearly, it costs more to produce a whiter, brighter sheet and many of these added chemicals degrade both strength of the sheet and cost more.
Paper.com has a complete line of bright-white sheets and ecologically friendly grades. www.paper.com has nearly 20,000 items of paper.

RR Donnelly May be in Buy Out Discussions

RR Donnelly, North America’s largest printer, has been offered buy out proposals from two different suitors. This, according to Bloomberg News.

Will the Paperless Office ever Happen?

Office copy paper has been declining in demand since its high of 1999. While the paper used in a ‘white collar’ office has steadily declined – consumption for the home use / home office steadily increases. Office Paper growth increased approximately 6-7% per year in the 1970s, 1980s and 1990s. Then, suddenly, it stopped growing and remains at 5.5million tons per year. The household consumption of office papers is slightly less than 20% of the total demand. Reports indicate that household consumption remained steady – at 5 pound per household from 1975 through 1995. Since 1995 the average household demand is nearly 18 pounds per year or about 3 reams (500 sheets of 8 1/2x11”). Therefore, with 115million households in USA – we estimate SOHO at 1million tons. By way of comparison, average office worker consumes about 125 pounds/year or 4.5million tons. We forecast that office papers will begin to decline because of computer technology, higher cost, less employment, younger people simply using less paper, and changes in cultural habits.
More offices and households are purchasing office supplies, including paper, from the Internet. Paper.com has nearly 20,000 paper items on site – many for the office environment.

Mohawk Paper reintroduces Strathmore Line

Mohawk Fine Papers, now the largest producer of premium printing and imaging papers in the USA, over hauled the Strathmore paper line. The line enjoys a broad range of attributes - Smooth to wove finish -available with fibers, strips, white or colors - Watermarked or not - cotton fiber or recycled - offset or digital -- Mohawk's Strathmore has it all. The mill has also redesigned the ream wrapper. Paper.com has the complete line of Mohawk Papers - in stock and ready for immediate delivery.

Mohawk Paper reintroduces Strathmore Line

Mohawk Fine Papers, now the largest producer of premium printing and imaging papers in the USA, over hauled the Strathmore paper line. The line enjoys a broad range of attributes - Smooth to wove finish -available with fibers, strips, white or colors - Watermarked or not - cotton fiber or recycled - offset or digital -- Mohawk's Strathmore has it all. The mill has also redesigned the ream wrapper. Paper.com has the complete line of Mohawk Papers - in stock and ready for immediate delivery.

International Paper Completes HQ move

International Paper recently completed its relocation of the corporate Headquarters from Stamford, CT to Memphis, TN. The company will employ approximately 3000 in Memphis.