Uncoated Freesheet Market update (UFS)

The big producers are starting to respond to signs of market softening. Domtar will take market related downtime at its Woodland, Maine mill. International Paper appears to be considering an accelerated closure of the 350,000 ton Pensacola, Florida UFS machine. September offset prices were revised down $5/ton to $845/ton; October prices were reported flat from last month. We think the industry needs to cut supply by 400-500,000/tons. While pricing is around "mid-cycle" levels, high costs mean that profitability is still poor. Paper.com has over 20,000 items on site, many of which are uncoated free sheet.