As reported by Paperage magazine
Pulp production is being fueled by export containerboard volumes and also by export pulp demand created by the weak U.S. dollar. Prices are also being pushed by Canadian and Brazilian costs of production and higher prices for domestic fiber created by fewer operating sawmills generating wood chips. Additional softwood and eucalyptus pulp capacities coming online in South America and recycled containerboard capacity in China could disrupt the steady pace of price increases seen this year. U.S. producers should still have one good year left in 2008, but it will be a draw for Canadian pulp exporters.
Paper demand in North America is saturated and will continue to be negatively influenced by the move to electronic advertising and a lower level of economic activity. Supply curtailments by International Paper at Bastrop, LA and Pensacola, FL and by Domtar at Woodland, ME, Port Edwards, WI, and Gatineau, QC may buttress domestic uncoated freesheet prices and even provide an opportunity for appreciation, but the grade will still lose some volumes to lower priced uncoated mechanical products made by AbitibiBowater and supercalendered grades which will be made by NewPage. Coated freesheet made by the latter has also been losing market share, and in a slowing economy this decline in demand will dominate prices, despite the fall in imports due to the weak U.S. dollar. The deciding profitability factor for North American paper producers will be cost reduction that can still be wrung from high cost capacity.
Monday, December 31, 2007
Paper Price Forecast for 2008
Because so many Canadian mills and several USA mills have shuttered production facilities and raw materials continue upward cost pressure; paper prices are forecasted to increase. Coated paper in particular is forecasted to increase 15% in first quarter 2008 and another 15% by midyear. Copy paper and papers for desktop printers will increase 10% in 2008. Printers will feel the additional cost increase from inks, forecasted to increase @10% in 2008. Paper.com continually attempts to offer paper at competitive prices, but producers often forced the site to increase prices.
Quick Snap Shot of Major Paper Markets
The uncoated freesheet paper market continued its downward track through 2007 as USA shipments dropped 6% from 2006. Electronic storage, raising postage costs, and automatic invoice payments, even proxy statements now sent electronically were all sited for reduction. The industry has answered the contraction in demand with a corresponding curtailment in supply (see Paper.com News Release on Paper Industry Blog at www.paper.com) Most recent reductions came from International Paper and Georgia Pacific – these two combined removed 700,000 tons. As a result, manufacturers were able to introduce price increases throughout 2007. Demand is expected to continue to decline – experts believe 1.5-2% decrease in 2008.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Printing Impressions announces top Printers for 2007
Top 5 Book Printers
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
Environmentally Friendly Papers continue to be Popular
2007 was the year for tremendous push for environmentally friendly papers and FSC Certification. The THINK GREEN campaign continues. The website, Paper.com, established an entire store within its site strictly for Environmentally friendly papers. Some recent manufactures that were added to the website’s list of ‘green papers include, Newpage’s Sterling Ultra for digital and coated applications; Smart Paper’s 100 percent post consumer, FSC, Genesis paper; Galerie Art – the only 100% post consumer paper designed specifically for Digital application; all the Mohawk Papers – produced from wind power; and, all the new Wausau Paper recycled grades.
2007 Major Mergers and Acquisitions in the Printing Industry
Valassis acquired ADVO ($1.2Bilion)
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
Papiers Gaspésia Sells Quebec Mill for $40 Million
Papiers Gaspésia has agreed to sell its Quebec mill and associated equipment to Vantek Inc. for US$40 million. Papiers Gaspésia is owned by Société générale de financement du Quebéc, Solidarity Fund QFL, Tembec and Investissement Québec. Vantek plans to sell the main equipment and remove the buildings. Liquidities generated from the deal will be invested in an economic development fund for new projects in the region.
Tuesday, December 18, 2007
Thoughts on Digital Printing
The Domtar Paper website shared many interesting points on digital printing we share in this Paper.com news release
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
MARKET PULP UPDATE
As 2007 concludes, the pulp market ends with price increases, with a $25/ton increase to $875/ton for NBSK. This is largely a "supply' driven" increase with wood and energy costs driving the market. Additionally, both SBSK and Eucalyptus prices increased $30/mton in December to $840/mton and $805/mton, respectively. Hardwood is reportedly the
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
Domtar Closing Paper Mill, Cutting Jobs, Curtailing Production
Ross Marowit of Canadian Press and remarks from industry experts.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Sunday, December 16, 2007
Newsprint producer shakeout continues
Newsprint is an uncoated paper that is defined as a grade produced with mechanical (groundwood) fiber and its primary end use is newspapers. The standard basis weight is mainly 30 lbs but weights also include 24 lbs through 35 lbs. Canada is the world leader in newsprint production and the USA is the world’s largest consumer. The bulk of USA newsprint going into daily newspapers. Demand for this grade continues its downward trend (decrease of 10.6% for 9 months 2007 vs. 2006). Many newsprint producers have shuttered equipment as a result.
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Release Liner for Labels has many Challenges
While the pressure sensitive Industry continues to grow, the threats for poor recylability continue. The 2006 worldwide label demand was nearly 40,000 million square meters spread out as North America 27.5%; South America 7.6%; Europe 31.9%; Asia 29.2% and rest of world 4.0%. The liner continues to be a large component of the cost to the label (@20-30%) and it continues to be focus of environmental sustainability – for lack of recyclable (also a wasteful ‘throw away’).
Domtar advocates Paper is here to Stay!
Domtar recently released a marketing piece outlining why paper is here to stay. Paper is portable, personal , permanent, and effective for marketing. Even in the age of electronics, many surveys confirm paper – power of the written word – is more effective than email and internet marketing. The Domtar promotion also confirms print can not be blocked or defaulted to spam; and has a greater degree of credibility. All important documents are printed – birth certificate, drivers license, graduation diploma, bank documents, etc. no waiting for images to upload, no logging on or hoping for a good connection, no scrolling, and easier on the eyes.
Domtar is the largest producer of uncoated papers in North America and second largest in world. Paper.com sells all the Domtar grades and endorses use of paper. Come to www.paper.com for all your paper needs.
Some additional comments from USPS-
67% of consumers feel mail is more personal than the internet
60% of consumers that read catalogs were influenced to go visit web site
-Catalog recipients purchased 28% more items than website counter parts
Domtar is the largest producer of uncoated papers in North America and second largest in world. Paper.com sells all the Domtar grades and endorses use of paper. Come to www.paper.com for all your paper needs.
Some additional comments from USPS-
67% of consumers feel mail is more personal than the internet
60% of consumers that read catalogs were influenced to go visit web site
-Catalog recipients purchased 28% more items than website counter parts
Neenah continues to go “green”
Neenah Paper has announced that six brands; Classic Crest, Classic Linen, Classic Laid, Classic Columns Classic Cotton, and Starwhite are now manufactured carbon neutral, reducing net greenhouse emissions associated with the paper making process. These grades are Green e-certified.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Kruger idles SC capacity
Kruger, one of the largest suppliers of supercalendered paper (SC), plans to shutter almost 215,000 tons of SC capacity. This affects the Trois Riviers mill (150.000 tons) and the Wayagamack mill (65,000 tons). The management sited weak Canadian dollar and increased energy cost
Salaries and Paper still greatest costs to Printers
According to PIA/GATF approximately 70% of printer’s sales dollars are used to pay for wages and paper. Energy also was sited as a growing cost concern. The industry sited increases of nearly 5.5% for paper; 3.4% for wages – 9% for health benefits; and energy rose over 6.5%.
Overall Printer Sales Increase for 2007
Although Printers that define themselves primarily as digital printers saw growth of nearly 10% year to date (9.4% over 2006) all mediums also witnessed growth. Namely, Sheetfed 1%; Heatset web 3%; and those printers that are combination of sheetfed/web 1.75%. These figures as reported from a survey done by Heidelberg.
Wednesday, December 12, 2007
Smart Papers looks to Environmentally Friendly Process
U.S. papermaker SMART Papers announced it has achieved Forest Stewardship Council (FSC) certification for its entire Genesis brand of premium uncoated printing and packaging papers. The full FSC certification of Genesis adds to the company’s growing line of FSC-certified papers, including those with post-consumer waste (PCW). SMART Papers, the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers, also said it now makes a majority of the Genesis papers with 100 percent
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
Cranes Announces Price Increase
Crane & Company announcing a price increase effective with orders shipping after January 2nd.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
More on Xerox High Yield Business Papers
As reported in past by Paper.com, Xerox has been successful in developing a high yield, groundwood containing business paper. The website markets this product as a high yield business paper AND an environmentally friendly grade. Because of the fiber used in this paper, 50% fewer trees are consumed (versus a regular 20pound bond); less chemicals, and less energy are also required. Ths exciting new ’green’ grade is available for immediate shipment from Paper.com.
Update on StoraEnso Capacity Reductions
In October, Paper.com announced StoraEnso would be reducing capacity of its paper making facilities. We recently learned, the company would be shuttering 500,000 tons of paper and 550,000 tons of pulp. They will permanently close the Summa mill – capacity of 415,000 tons of newsprint, uncoated magazine paper, and book paper – in first quarter of 2008. At StoraEnso’s Anjala mill, paper machine #2, which produces 155,000 of coated magazine paper, will stop production. This machine will be converted to manufacture book paper. Once this rebuild is complete, #1 paper machine at Anjala will be closed – eliminating 120,000 tons of book paper.
Wausau to Shutter Groveton, NH mill
As previously reported by Paper.com, Wausau will close its New Hampshire paper mill. The effective date has now been confirmed for December 31,2007. The mill had produced 105,000 tons per year of printing and writing grades, which was 28% of Wausau’s total system capacity.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Where have all the Readers Gone?
United States continues to show drop off in levels of readers in the past two decades. The National Endowment for the Arts (NEA) reports a general decline among teenage and adult readers. One cannot deny the increase in electronic media and devices are competing for the printed word. The association commented –
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
Paper mills haven’t kept pace with inflation
By Tom Stundza -- Purchasing
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Schweitzer-Mauduit to cut Capacity
Schweitzer-Mauduit will reduce paper production in both USA and France by shuttering four paper machines. The USA mill is located in Lee, MA and produced tipping paper for the cigarette industry. The company sited a reduction in demand for traditional tobacco related paper.
Tuesday, December 04, 2007
AbitibiBowater announces $60/tonne US newsprint hike in 1Q 2008
AS reported by RISI
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
US pulp, paper industry 3Q results
as reported by RISI
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
COATED FREESHEET UPDATE
Coated Free Sheet prices are rising, with the price on No. 3 60lb coated rising $5/ton in September, after a $30/ton increase in August. Prices continue to rise in October up another $20/ton. Chinese mills have done an met with success on antidumping duties as well as boosting the content of mechanical pulp in their paper and have shift almost all of their lost CFS tonnage to LWC. Also, the US Government recently ruled against the new tariffs for the coated Freesheet grades. as reported earlier in Paper.com news release. NewPage attempted to have these grades included under the antidumping ruling. NewPage is also suggesting that they will soon file antidumping charges against European coated producers. Anyones guess as to whether the price increase will now stick.
LinerBoard to Increase in Price
International Paper announced $60/ton hike on white top linerboard price, effective Dec. 3rd. We assume other producers such as PCA, Temple and Weyerhaeuser will announce an increase shortly.
Postal: Rates Hikes Will Follow Reform Bill
Catalogers and heavy mailers can breath a sigh of relief because officials state that postal rate increases will now follow the Postal Reform bill passed 11 months ago. The U.S. Postal Service's Board of Governors announced that future price increases will be tied to the Consumer Price Index (CPI), or rate of inflation, for mailing services that include First Class, Standard Mail, and periodicals.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
UNCOATED FREE SHEET UPDATE
Despite modest demand, for uncoated freesheet in USA, the $60/ton price hike initiative on offset grades is almost fully implemented, as November's $10/ton rise takes prices up $50/ton over the last two months. Trade book prices are up $80/ton in the last two months. October uncoated freesheet shipments dropped 2.4% from last year. Our trade sources suggest that the domestic pricing momentum in spot pricing on uncoated free sheet grades has moderated a somewhat in recent weeks. As noted in past news releases, supply reductions are keeping the
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
China Wins Recent Pricing Battle for Coated Papers
The American coated paper producers received a disappointing message in their fight against Chinese imports. Recall the breaking news Paper.com reported last month outlining initial victory with President Bush voting in favor of a large tariff (20-30%) on imported coated papers. NewPage, a large coated paper producer stated they and other manufacturers were materially 'injured’ with low priced, subsidized imports from countries such as China, South Korea and Indonesia. The Federal Trade Commission ruled that these imports did not cause harm and voted against the tariff. Furthermore, the World Trade Organization is reviewing whether these tariffs are legal. In the meanwhile, the newly imposed tariffs are canceled. The Commerce Department is now reviewing.
AbitibiBowater to Shutter, Idle Mills
AbitibiBowater Inc., one of the largest newsprint manufacturers in North America, said it plans to close four paper mills, idle operations at others.
The Montreal-based company, formed last month from the merger of
Abitibi-Consolidated Inc. and Bowater Inc., said the production changes, which will take place during the first quarter of next year, will lower its newsprint and commercial printing paper production capacity by about 1 million metric tons per year.
The mills slated for permanent closure are Belgo, Dalhousie, Fort William and Lufkin. One paper machine at the company's Gatineau facility in Quebec will also be permanently shut down. All but the Belgo and Dalhousie facilities previously stood idle; the idled operations had a combined capacity of 650,000 metric tons.
AbitibiBowater also plans to indefinitely idle two Canadian paper mills, the Donnacona and Mackenzie, as well as two sawmills tied to paper production at the Mackenzie facility.
The Montreal-based company, formed last month from the merger of
Abitibi-Consolidated Inc. and Bowater Inc., said the production changes, which will take place during the first quarter of next year, will lower its newsprint and commercial printing paper production capacity by about 1 million metric tons per year.
The mills slated for permanent closure are Belgo, Dalhousie, Fort William and Lufkin. One paper machine at the company's Gatineau facility in Quebec will also be permanently shut down. All but the Belgo and Dalhousie facilities previously stood idle; the idled operations had a combined capacity of 650,000 metric tons.
AbitibiBowater also plans to indefinitely idle two Canadian paper mills, the Donnacona and Mackenzie, as well as two sawmills tied to paper production at the Mackenzie facility.
Newton Falls Mill Resumes Coated Paper Production
Newton Falls Fine Paper has begun paper production at the former St. Lawrence mill in Newton Falls, NY, which was previously owned by Belkorp Industries subsidiary Newstech.
PM 4 at the two-machine mill was restarted Sept. 7 and is making upwards of 80,000 tons/yr of 45 lb to 103 lb matte coated paper for book and commercial printing end uses such as catalogs and direct mail. A restart for PM 3 has yet to be slated.
The 150,000 tons/yr Newton Falls mill had been shuttered for seven years, but was so well maintained that it was making saleable paper within 36 hours of resuming operations.
PM 4 at the two-machine mill was restarted Sept. 7 and is making upwards of 80,000 tons/yr of 45 lb to 103 lb matte coated paper for book and commercial printing end uses such as catalogs and direct mail. A restart for PM 3 has yet to be slated.
The 150,000 tons/yr Newton Falls mill had been shuttered for seven years, but was so well maintained that it was making saleable paper within 36 hours of resuming operations.
The Top 10 Challenges of Digital Printing
By Peter Renton the founder of Lightning Labels Inc
Digital label printing is no longer some exotic technology that belongs more to the future of label printing than the present. HP Indigo, the leading digital label press manufacturer, recently reported more than 500 press installations worldwide. The company is now one of the top three label press manufacturers in terms of unit sales. In the last two years the number of HP installed presses has doubled and the number of labels printed has quadrupled.
With this kind of success it is fair to say that digital label printing has become mainstream. However, this doesn’t mean that going digital does not present its own unique challenges. This article will discuss some of these challenges and how to deal with them. It will focus on the HP Indigo technology because that is the leading player in this field, although today there are several other choices if you are considering a digital press.
1. Getting business
Whether you have a digital press, a flexo, gravure, screen, or offset press, the most important challenge is always to make sure you have enough profitable business to fill the press time. The additional challenge with digital is that because of its slower print speed you need to focus on the shorter runs. No doubt you will be relying on your sales people to leverage your existing customers, but you will probably need a plan to get business from new customers as well. The good news is that there are many more businesses out there looking for short run labels than long runs, but you need a good sales plan that focuses on these smaller companies in order to get this business.
2. Putting new systems in place
Another huge challenge is how to integrate digital printing into an existing converting operation. If you use exactly the same systems as you do with your flexo press you will be wasting time and resources. The challenge is to implement new systems from sales and customer service all the way through to rewinding and shipping. Digital printing by its very nature is a more lean manufacturing process; there are fewer steps involved in production and less waste. If you are taking more than a week to turn around your digital printing orders, then you either need more capacity or you have too much waste in your system.
3. Substrates
You cannot run just any substrate through an HP press; most substrates have to be specially coated before the ink will adhere properly. This is not the issue it once was, because most of the major substrate vendors now have several different choices of material coated for the HP presses. Of course, there is always the option for you to coat the material yourself on an existing flexo press, but that is more challenging than you might think. Different materials require different coatings and there is a lot of trial and error involved before coming up with the right formula. Another alternative is to outsource the coating to a company that specializes in it. Masterpiece Graphix in St. Louis is HP’s only certified North American treatment center for coating material, and you can have them coat pretty much any material that you can run through an HP press.
4. Finding the right people
If you expect a flexo operator to jump in and operate an HP press with ease you will be sorely disappointed. HP provides two weeks of operator training at the end of which time your operator should be able to print labels and replace consumables just fine. The challenge he or she will face is in resolving problems (see point 7). It takes a great deal of experience to know just what is really causing the print problems you will inevitably experience. As for what kind of person makes the best operator, there is some debate among HP users. A flexo operator who is good with new technology would work well, but other shops prefer a prepress person who has some mechanical skill. Either type of person should work, but it will be a long learning curve for someone who has little experience with either prepress or press operation.
5. Managing color
As with all presses, managing color is a constant issue on a digital press. The ws4500 press is the best press HP has ever produced as far as repeatability of color, but there will still be some issues. It is important to maintain a consistent operating environment. These presses work best with a constant temperature of around 70°F and a humidity of 40 to 50 percent. If you stray too far from these settings you will get color problems. As with any four color process press, matching a PMS is always a challenge, but HP provides an optional six color process solution called Indichrome (CMYK plus orange and violet) that helps match the majority of PMS colors very closely. The biggest challenge for flexo shops will always be matching color between the digital and flexo presses. Prepress tools from Esko can help with this process, but with two totally different printing technologies matching color exactly will often be very difficult.
6. Integrating with finishing
There are plenty of finishing options available today for the HP presses. You have three excellent solutions that are provided by AB Graphic, Rotoflex and Delta, and these vendors continue to improve their presses. Keeping the diecutting registration is the biggest challenge even with these new presses, and if you have mainly very short runs, swapping dies in and out will slow down your productivity. Also, HP Indigo inks are not particularly durable so you should plan on adding a UV varnish or laminate to most of your labels.
7. Troubleshooting press problems
Why is the press running a little heavy in magenta? What is causing the white spots on these labels? Why is there banding in the dark blue colors? Why can’t I match the proof I printed yesterday? There are literally dozens of possibilities to each of these typical press problems. And these problems can drive inexperienced press operators crazy. There is no substitute for experience, and an experienced operator can look at a problem and know the most likely cause. Online user forums such as DICE (Digital Imaging Customer Exchange) and DSCOOP (Digital Solutions Cooperative run by HP) can be really valuable for helping to troubleshoot problems if your operator is stumped. You can search through the archives for your problem and often find a solution on the spot. Or you can post a question to the group and often get a response within minutes.
8. Press maintenance
You can avoid many of the press problems mentioned above by maintaining your digital press properly. To print consistently well, HP digital presses need rigorous maintenance. There are blankets that need changing at least every 50,000 impressions or so, and the photo imaging plate or PIP (the plate that takes the lasered image) also needs to be changed regularly. If you push either of these components your print quality will start to decline. There is a regular maintenance schedule for dozens of other parts that needs to be adhered to as well. Also, adhesive buildup throughout the press can become an issue if it is not cleaned regularly. The challenge comes when you are very busy and it is tempting to skimp on maintenance, but in the long run this will only cause more total downtime.
9. Got database knowledge?
The ability to print variable data is one of the main benefits of digital printing. But to take advantage of all of the capabilities that this provides you need to have someone who knows databases very well. The HP press takes a CSV file as the input database file (which every database program can export to) so you have lots of choices here. Microsoft Excel is the standard here, most of us have it on our PCs and it is easy to get help if you have a problem.
Here are a couple of typical database challenges. A customer may request consecutive labels from A00001 to A19999, but with the even numbers all on one roll and the odd numbers all on another roll. Or it might be that the even numbers repeat three times, and the odd numbers only repeat twice. And the requests can get much more complex than that. You need to be able to set up the database so the variable data job will run both efficiently and correctly — keeping in mind that an error in a sequential run will often force you to repeat the whole job to achieve the required result.
10. Dealing with inexperienced customers
Most label converters have to deal with some unsophisticated or unknowledgeable customers, but when dealing with customers who want only a few hundred labels you are more likely to come across this in your digital printing operation. It is a constant challenge, and one that involves a lot of education by your prepress operators.
We have a document on our web site that points out the most common artwork problems, but we still have to deal with missing fonts, RGB files and low resolution JPEGs every day. We take the time to educate the customer, so when they come back we can get high quality files and go straight to press. Similarly, your sales force and customer service staff have to become adept at dealing with “first timers” who have no knowledge of printing in general, let alone the intricacies unique to labels.
There are plenty of other challenges that haven’t been mentioned here, but these are the main issues that everyone will have to deal with in their digital printing operation. None of these challenges are insurmountable and with an experienced staff you might find some don’t come into play much at all. Digital printing continues to make advances with each new generation of machines eliminating some of the challenges of the previous generation. By being aware of and dealing with the challenges that do exist, you can take advantage of the many benefits that digital printing provides.
Digital label printing is no longer some exotic technology that belongs more to the future of label printing than the present. HP Indigo, the leading digital label press manufacturer, recently reported more than 500 press installations worldwide. The company is now one of the top three label press manufacturers in terms of unit sales. In the last two years the number of HP installed presses has doubled and the number of labels printed has quadrupled.
With this kind of success it is fair to say that digital label printing has become mainstream. However, this doesn’t mean that going digital does not present its own unique challenges. This article will discuss some of these challenges and how to deal with them. It will focus on the HP Indigo technology because that is the leading player in this field, although today there are several other choices if you are considering a digital press.
1. Getting business
Whether you have a digital press, a flexo, gravure, screen, or offset press, the most important challenge is always to make sure you have enough profitable business to fill the press time. The additional challenge with digital is that because of its slower print speed you need to focus on the shorter runs. No doubt you will be relying on your sales people to leverage your existing customers, but you will probably need a plan to get business from new customers as well. The good news is that there are many more businesses out there looking for short run labels than long runs, but you need a good sales plan that focuses on these smaller companies in order to get this business.
2. Putting new systems in place
Another huge challenge is how to integrate digital printing into an existing converting operation. If you use exactly the same systems as you do with your flexo press you will be wasting time and resources. The challenge is to implement new systems from sales and customer service all the way through to rewinding and shipping. Digital printing by its very nature is a more lean manufacturing process; there are fewer steps involved in production and less waste. If you are taking more than a week to turn around your digital printing orders, then you either need more capacity or you have too much waste in your system.
3. Substrates
You cannot run just any substrate through an HP press; most substrates have to be specially coated before the ink will adhere properly. This is not the issue it once was, because most of the major substrate vendors now have several different choices of material coated for the HP presses. Of course, there is always the option for you to coat the material yourself on an existing flexo press, but that is more challenging than you might think. Different materials require different coatings and there is a lot of trial and error involved before coming up with the right formula. Another alternative is to outsource the coating to a company that specializes in it. Masterpiece Graphix in St. Louis is HP’s only certified North American treatment center for coating material, and you can have them coat pretty much any material that you can run through an HP press.
4. Finding the right people
If you expect a flexo operator to jump in and operate an HP press with ease you will be sorely disappointed. HP provides two weeks of operator training at the end of which time your operator should be able to print labels and replace consumables just fine. The challenge he or she will face is in resolving problems (see point 7). It takes a great deal of experience to know just what is really causing the print problems you will inevitably experience. As for what kind of person makes the best operator, there is some debate among HP users. A flexo operator who is good with new technology would work well, but other shops prefer a prepress person who has some mechanical skill. Either type of person should work, but it will be a long learning curve for someone who has little experience with either prepress or press operation.
5. Managing color
As with all presses, managing color is a constant issue on a digital press. The ws4500 press is the best press HP has ever produced as far as repeatability of color, but there will still be some issues. It is important to maintain a consistent operating environment. These presses work best with a constant temperature of around 70°F and a humidity of 40 to 50 percent. If you stray too far from these settings you will get color problems. As with any four color process press, matching a PMS is always a challenge, but HP provides an optional six color process solution called Indichrome (CMYK plus orange and violet) that helps match the majority of PMS colors very closely. The biggest challenge for flexo shops will always be matching color between the digital and flexo presses. Prepress tools from Esko can help with this process, but with two totally different printing technologies matching color exactly will often be very difficult.
6. Integrating with finishing
There are plenty of finishing options available today for the HP presses. You have three excellent solutions that are provided by AB Graphic, Rotoflex and Delta, and these vendors continue to improve their presses. Keeping the diecutting registration is the biggest challenge even with these new presses, and if you have mainly very short runs, swapping dies in and out will slow down your productivity. Also, HP Indigo inks are not particularly durable so you should plan on adding a UV varnish or laminate to most of your labels.
7. Troubleshooting press problems
Why is the press running a little heavy in magenta? What is causing the white spots on these labels? Why is there banding in the dark blue colors? Why can’t I match the proof I printed yesterday? There are literally dozens of possibilities to each of these typical press problems. And these problems can drive inexperienced press operators crazy. There is no substitute for experience, and an experienced operator can look at a problem and know the most likely cause. Online user forums such as DICE (Digital Imaging Customer Exchange) and DSCOOP (Digital Solutions Cooperative run by HP) can be really valuable for helping to troubleshoot problems if your operator is stumped. You can search through the archives for your problem and often find a solution on the spot. Or you can post a question to the group and often get a response within minutes.
8. Press maintenance
You can avoid many of the press problems mentioned above by maintaining your digital press properly. To print consistently well, HP digital presses need rigorous maintenance. There are blankets that need changing at least every 50,000 impressions or so, and the photo imaging plate or PIP (the plate that takes the lasered image) also needs to be changed regularly. If you push either of these components your print quality will start to decline. There is a regular maintenance schedule for dozens of other parts that needs to be adhered to as well. Also, adhesive buildup throughout the press can become an issue if it is not cleaned regularly. The challenge comes when you are very busy and it is tempting to skimp on maintenance, but in the long run this will only cause more total downtime.
9. Got database knowledge?
The ability to print variable data is one of the main benefits of digital printing. But to take advantage of all of the capabilities that this provides you need to have someone who knows databases very well. The HP press takes a CSV file as the input database file (which every database program can export to) so you have lots of choices here. Microsoft Excel is the standard here, most of us have it on our PCs and it is easy to get help if you have a problem.
Here are a couple of typical database challenges. A customer may request consecutive labels from A00001 to A19999, but with the even numbers all on one roll and the odd numbers all on another roll. Or it might be that the even numbers repeat three times, and the odd numbers only repeat twice. And the requests can get much more complex than that. You need to be able to set up the database so the variable data job will run both efficiently and correctly — keeping in mind that an error in a sequential run will often force you to repeat the whole job to achieve the required result.
10. Dealing with inexperienced customers
Most label converters have to deal with some unsophisticated or unknowledgeable customers, but when dealing with customers who want only a few hundred labels you are more likely to come across this in your digital printing operation. It is a constant challenge, and one that involves a lot of education by your prepress operators.
We have a document on our web site that points out the most common artwork problems, but we still have to deal with missing fonts, RGB files and low resolution JPEGs every day. We take the time to educate the customer, so when they come back we can get high quality files and go straight to press. Similarly, your sales force and customer service staff have to become adept at dealing with “first timers” who have no knowledge of printing in general, let alone the intricacies unique to labels.
There are plenty of other challenges that haven’t been mentioned here, but these are the main issues that everyone will have to deal with in their digital printing operation. None of these challenges are insurmountable and with an experienced staff you might find some don’t come into play much at all. Digital printing continues to make advances with each new generation of machines eliminating some of the challenges of the previous generation. By being aware of and dealing with the challenges that do exist, you can take advantage of the many benefits that digital printing provides.
Pulp Prices are Continuing to Increase
Paper mills haven’t kept pace with inflation according to Tom Stundza of Purchasing Magazine.
Pulp prices, which have been rising monthly since March 2006, and they will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasing data.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, and they will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasing data.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp Prices are Continuing to Increase
Paper mills haven’t kept pace with inflation according to Tom Stundza of
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Highlights from Deutsche Bank Session on Paper Industry
* Highlights from Ohio investor trip
Deutsche Bank recently sponsored an Ohio investor trip. We visited a variety of public & private companies, all in the paper & packaging sector. The companies visited on our tour included: Glatfelter, Greif, NewPage and Sonoco. Summary comments are found below.
* Glatfelter – Chillicothe leverage could exceed current targetsAfter struggling during the first 9-12 months of ownership, GLT appears to be putting Chillicothe on track. While the Chilicothe complex is large and sprawling with several older buildings, the core machines are relatively large and appear well-maintained. The
mill has absorbed $550MM of invested capital since 1990. The mill is well-positioned from a fiber cost/supply standpoint.
* NewPage – Duties and currency could restructure global coated industry
NewPage has successfully pressed antidumping claims against Asian coated paper producers. NewPage will file antidumping claims against the Europeans. When coupled with FX moves, the European anti-dumping case could accelerate a restructuring of the entire global coated paper sector.
Deutsche Bank recently sponsored an Ohio investor trip. We visited a variety of public & private companies, all in the paper & packaging sector. The companies visited on our tour included: Glatfelter, Greif, NewPage and Sonoco. Summary comments are found below.
* Glatfelter – Chillicothe leverage could exceed current targetsAfter struggling during the first 9-12 months of ownership, GLT appears to be putting Chillicothe on track. While the Chilicothe complex is large and sprawling with several older buildings, the core machines are relatively large and appear well-maintained. The
mill has absorbed $550MM of invested capital since 1990. The mill is well-positioned from a fiber cost/supply standpoint.
* NewPage – Duties and currency could restructure global coated industry
NewPage has successfully pressed antidumping claims against Asian coated paper producers. NewPage will file antidumping claims against the Europeans. When coupled with FX moves, the European anti-dumping case could accelerate a restructuring of the entire global coated paper sector.
Uncoated Groundwood Prices still up
Uncoated Groundwood specialty grades are those grades that are produced with mechanical fiber and are of lighter quality than simple newsprint. The brightness is typically higher than 65 ISO; it is smoother than newsprint, heavier in weight and has some special characteristics such as higher bulk. This grade can end up being used for preprinted newspaper inserts, direct mail flyers, catalogues, magazines, Sunday newspaper magazines, paperback book paper, and telephone books.
The total North American capacity for producing these grades is at 6.7million tons. Although demand has been fairly flat the past few years, capacity has been taken out of the market and therefore with less supply pricing remains firm. The supercalender portion of the market enjoys excellent demand.
Top North American producers of Specialty Groundwod include
Mill Capacity (000) Market Share (Source RISI)
Abitibi/Bowater 2,755 39.7%
Catalyst 870 12.6%
Stora Enso 710 10.2%
Fraser/Katahdin 500 7.2%
Irving 420 6.1%
Kruger 285 4.1%
St Marys 220 3.2%
Manistique 120 1.7%
White Birch 95 1.4%
Norpac 75 1.1%
The total North American capacity for producing these grades is at 6.7million tons. Although demand has been fairly flat the past few years, capacity has been taken out of the market and therefore with less supply pricing remains firm. The supercalender portion of the market enjoys excellent demand.
Top North American producers of Specialty Groundwod include
Mill Capacity (000) Market Share (Source RISI)
Abitibi/Bowater 2,755 39.7%
Catalyst 870 12.6%
Stora Enso 710 10.2%
Fraser/Katahdin 500 7.2%
Irving 420 6.1%
Kruger 285 4.1%
St Marys 220 3.2%
Manistique 120 1.7%
White Birch 95 1.4%
Norpac 75 1.1%
Thursday, November 08, 2007
Sterling Digital big Seller at Paper.com
Paper.com remarked on how popular the Sterling Ultra Digital grades have been on site.
A few attributes outlining this grade include-
Grade: Sterling Ultra Digital
suitable for 'all' digital presses EXCEPT Hewlett Packard (HP)
HP has a special Sterling grade called Sterling Ultra Digital for HP indigo for the HP requirements
>RIT has qualified the non HP grade for Kodak, other presses suitable include Heidelberg, Komori, Xerox, Canon, Xeikon (rolls), IBM (rolls), AGFA, and OCE..
Also, Ryobi, KBA, KPG, PresTek, and ManRoland,
>Grade features for all the Sterling Digital include
High brightness
Special surface coating
7pt and 9pt available and USPS approved for reply card
Acid Free (for good archival)
10% post consumer fibers
ECF - Elemental Chlorine Free (candidate for green store???)
Available in text ann cover weights and gloss, matte, and Dull.
A few attributes outlining this grade include-
Grade: Sterling Ultra Digital
suitable for 'all' digital presses EXCEPT Hewlett Packard (HP)
HP has a special Sterling grade called Sterling Ultra Digital for HP indigo for the HP requirements
>RIT has qualified the non HP grade for Kodak, other presses suitable include Heidelberg, Komori, Xerox, Canon, Xeikon (rolls), IBM (rolls), AGFA, and OCE..
Also, Ryobi, KBA, KPG, PresTek, and ManRoland,
>Grade features for all the Sterling Digital include
High brightness
Special surface coating
7pt and 9pt available and USPS approved for reply card
Acid Free (for good archival)
10% post consumer fibers
ECF - Elemental Chlorine Free (candidate for green store???)
Available in text ann cover weights and gloss, matte, and Dull.
Wednesday, November 07, 2007
Mohawk continues to be Green
One of Paper.com’s premier suppliers for environmentally friendly papers, Mohawk Paper Mill, has recently been named to the EPA’s list of 100 percent green power purchasers. Mohawk now produces 100% of its electricity from renewable wind power – this producer is the first paper mill to do this. The company produces many quality text and cover and digital paper grades that are environmentally friendly, including Beckett Concept and Expressions, Strathmore Writing and Script, and Mohawk Options, Via, and Color Copy. The mill is FSCcertified and most products, including the digital line are Green E-certified. In addition, Mohawk announced that five of its trucks were converted to biodiesel fuel.
Paper.com is proud to market these environmentally friendly grades.
Paper.com is proud to market these environmentally friendly grades.
Tuesday, November 06, 2007
Bowater and Abitibi Deal Done
Abitibi and Bowater completed their merger. The new company is called AbitibiBowater This combined company will be the largest newsprint producer. The merger combines 32 pulp and paper mills and 35 wood
products facilities now under the new new name of AbitibiBowater.
products facilities now under the new new name of AbitibiBowater.
NewPage Purchases StoraEnso NA
NewPage recently announced it had signed a definitive agreement to acquire StoraEnso’s North American paper production facilities. NewPage will pay $1.5billion and the deal is expected to close first quarter of 2008.
Xerox Introduces new Grade
As reported by Paper.com in past about the new Xerox grade, made with mechanical pulp, is now available.
Xerox announced the availability of a 45lb text grade (17.7lb equivalent weight for bond) for its copy equipment. It offers 10% more sheets per pound and performs the same as the typical 50lbs text (20lbs – bond). The opacity is equal to that of a traditional 60lbs text (24lbs – bond) and has a brightness of 84.
Paper.com markets Xerox grades.
Xerox announced the availability of a 45lb text grade (17.7lb equivalent weight for bond) for its copy equipment. It offers 10% more sheets per pound and performs the same as the typical 50lbs text (20lbs – bond). The opacity is equal to that of a traditional 60lbs text (24lbs – bond) and has a brightness of 84.
Paper.com markets Xerox grades.
New Glow in the Dark Inks
Paper.com markets many bright paper grades and have just learned of an ink manufacturer that offers glow in the dark inks. The ink is supplied by Gans Ink and Supply. The inks can be used by commercial printers for such projects as artwork, emergency / safety signs, and creating novel promotions to capture the imagination.
Emerging Markets help Tissue Paper Market Grow
As most markets are steady or declining in the developed world, some manufactures are turning to the emerging markets. The USA market for tissue had an average growth of 5.5% since 2004 while markets such as Indonesia, Poland, Romania, and Brazil have grown over 30% and in some countries over 50%. As disposable income rises, the customer base for tissue also expands.
Friday, November 02, 2007
Minor Growth for Print Shipments
PIA/GATF reported that US printing shipments grew at a modest pace over the first half of this year, 2.7 percent ahead of last year’s first half.
Survey Results from Commercial Printer around USA
Graphic DesignUSA reported on a recent survey
Projects creative firms worked on through September 2007 (in Order)
1 Brochure
2 Sales Promotions
3 Direct mail
4 Cards, Invitations, Announcements
5 Identity / Letterhead
6 Posters
7 Packaging / POP /Signs
8 Print Advertising
9 Annual / Corporate Reports
10 Publications / Periodicals
Who makes final Paper selection (in order)
1 Graphic Designer / Art Director / Creative
2 Client / Customer
3 Production / Manager
4 Printer / Printing salesperson
5 Paper Merchant / Spec Representative
6 Prepress shops
7 Office supply store
Kinds of paper most specified (in order)
1 Uncoated Text & Cover
2 Coated sheet fed / web
3 Writing / Letterhead
4* Recycled Papers
5 Opaque
6 Translucent
7 Color copy / Inkjet / Laser
8 Synthetic / Tear resistant
9** Digital
10 Holographic /Metallic
4* Recycle Papers continue to be popular
9** Digital printing is one of the fastest growing paper specified.
Paper.com, one of the largest online sites solely marketing paper has 40,000 items and has grades in all 10 of these categories.
Projects creative firms worked on through September 2007 (in Order)
1 Brochure
2 Sales Promotions
3 Direct mail
4 Cards, Invitations, Announcements
5 Identity / Letterhead
6 Posters
7 Packaging / POP /Signs
8 Print Advertising
9 Annual / Corporate Reports
10 Publications / Periodicals
Who makes final Paper selection (in order)
1 Graphic Designer / Art Director / Creative
2 Client / Customer
3 Production / Manager
4 Printer / Printing salesperson
5 Paper Merchant / Spec Representative
6 Prepress shops
7 Office supply store
Kinds of paper most specified (in order)
1 Uncoated Text & Cover
2 Coated sheet fed / web
3 Writing / Letterhead
4* Recycled Papers
5 Opaque
6 Translucent
7 Color copy / Inkjet / Laser
8 Synthetic / Tear resistant
9** Digital
10 Holographic /Metallic
4* Recycle Papers continue to be popular
9** Digital printing is one of the fastest growing paper specified.
Paper.com, one of the largest online sites solely marketing paper has 40,000 items and has grades in all 10 of these categories.
Kruger to Shut Down two Paper Machines
Kruger announced that it will shut down production on the two supercalendered paper machines at its Trois-Rivieres mill due to increased value of Canadian dollar and production costs. The scheduled temporary production shutdown of paper
machine No. 5 from October 31 to November 11 will be extended for an indefinite period. This interruption will affect 65 employees. Production on Paper Machine No. 6 will however resume as planned on November 12, but will be interrupted for an indefinite period as of February 4, 2008, affecting 115 employees. Annual production on these two machines is 150,000 tons.
machine No. 5 from October 31 to November 11 will be extended for an indefinite period. This interruption will affect 65 employees. Production on Paper Machine No. 6 will however resume as planned on November 12, but will be interrupted for an indefinite period as of February 4, 2008, affecting 115 employees. Annual production on these two machines is 150,000 tons.
Evergreen Packaging to cut 122 jobs
RISI reported the Rank Group's Evergreen Packaging Group will eliminate 122 jobs at its Canton, NC, bleached board and uncoated freesheet paper mill and its Waynesville, PA, finishing plant, through attrition, the
Asheville (NC) Citizen-Times said recently.
Evergreen Packaging was created after Rank Group purchased Blue Ridge Paper this summer and renamed the company. The Rank Group also purchased International Paper's liquid packaging business and mill in Pine Bluff, AR,
last year.
Evergreen's headquarters is now in Memphis, TN
Asheville (NC) Citizen-Times said recently.
Evergreen Packaging was created after Rank Group purchased Blue Ridge Paper this summer and renamed the company. The Rank Group also purchased International Paper's liquid packaging business and mill in Pine Bluff, AR,
last year.
Evergreen's headquarters is now in Memphis, TN
Thursday, October 25, 2007
Digital Printing versus Offset Printing
Paper.com often reports on the dynamics of the digital printing market. The site has all the major brands and will ship as little as a ream of paper up to multi truck loads. In a recent article in DPSMagazine, three primary factors must be considered when deciding between digital and offset. First is format or size as well as print quality. Although the quality of digital has improved, offset printing is still better and the maximum size for a digital press finished piece is 20X14”. Special paper should be used when printing digital, while offset allows for a multitude of substraights. Second consideration is how you will market the printed piece – personalized or generic. Primary strength for the digital technology is the ability to personalize every piece and customize the message. The third consideration is price, digital generally appears more expense; however, one must focus on all costs including make ready and waste – digital printing really is more competitive than perceived – especially for short runs.
Which Process to use – Digital vs. Offset
DSPMagazine goes on to summarize evaluation process –
1. Format Size
2. Run Length
3. Brand or Spot Colors
4. Finishing requirements
5. Print Quality
6. Application
7. Substraight (type of paper) demanded
Which Process to use – Digital vs. Offset
DSPMagazine goes on to summarize evaluation process –
1. Format Size
2. Run Length
3. Brand or Spot Colors
4. Finishing requirements
5. Print Quality
6. Application
7. Substraight (type of paper) demanded
Abitibi and Bowater Merger is Closer
Abitibi and Bowater have agreed to sell a 370,000/mton newsprint in Snowflake, Arizona in order to meet Department of Justice antitrust concerns and gain approval for their proposed merger.
Wausau to Close New Hampshire Mill
Groveton, New Hampshire, paper mill closure will cut 105K of Uncoated Free Sheet capacity. Wausau Paper, based in Mosinee, Wis., employs 3,200 people at 11 facilities in seven states. It announced the Groveton mill closure when it released its third-quarter report.
Wausau's printing and writing division reported an operating loss of $1.3 million. Two years ago, Groveton Paperboard, which produced corrugated material and shared space with Wausau, shut down, leaving more than 100 workers stranded. Wausau was left to operate the building on its own, which added to its costs. The company will continue to produce printing and writing grades at its Brokaw, Wisconsin and Brainerd, Minnesota mills.
In 2001, other New Hampshire paper mills were shuttered including Berlin, Gorham and Contoocook.
Paper.com has all the popular Wausau products in stock and ready for immediate shipment.
Wausau's printing and writing division reported an operating loss of $1.3 million. Two years ago, Groveton Paperboard, which produced corrugated material and shared space with Wausau, shut down, leaving more than 100 workers stranded. Wausau was left to operate the building on its own, which added to its costs. The company will continue to produce printing and writing grades at its Brokaw, Wisconsin and Brainerd, Minnesota mills.
In 2001, other New Hampshire paper mills were shuttered including Berlin, Gorham and Contoocook.
Paper.com has all the popular Wausau products in stock and ready for immediate shipment.
Stora Enso Reduces capacity and administrative staff Stora Enso Reduces capacity and administrati
Management just announced that Stora Enso plans to cut magazine paper, newsprint and pulp capacity and reduce its administrative staff. Stora Enso’s intention is to close down permanently Summa Paper Mill and one magazine paper machine at Anjala Mill, and the pulp mills at Kemijärvi and Norrsundet. The closures will reduce annual capacity by 505 000 tons of newsprint and magazine paper and 550 000 tons of pulp. The number of personnel affected by these planned permanent mill closures will total about 1 400 - about 1 100 in Finland and about 300 in Sweden.
Stora Enso also plans to divest its mills at Kotka in Finland. The laminating paper business and the special coated magazine paper operations at Kotka are to be divested as Stora Enso continues to focus its portfolio.
Stora Enso also plans to divest its mills at Kotka in Finland. The laminating paper business and the special coated magazine paper operations at Kotka are to be divested as Stora Enso continues to focus its portfolio.
Magazine Revenue Up In 2007
As reported by MediaDailyNews - Magazine Revenues are up 5.6%in the first three quarters of 2007, compared to the same period last year--topping $17.9 billion, according to figures from the Publishers Information Bureau. At the same time, advertising pages slipped 1% to 172,622, suggesting that increased demand is driving up prices for magazine ads. However, many magazines offer unannounced discounts on their reported "rate card" prices, making it difficult to know the true extent of price inflation.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.
Magazine Revenue Up In 2007
As reported by MediaDailyNews - Magazine Revenues are up 5.6%in the first three quarters of 2007, compared to the same period last year--topping $17.9 billion, according to figures from the Publishers Information Bureau. At the same time, advertising pages slipped 1% to 172,622, suggesting that increased demand is driving up prices for magazine ads. However, many magazines offer unannounced discounts on their reported "rate card" prices, making it difficult to know the true extent of price inflation.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.
US Upholds Penalties on Asian Coated Free Sheet Imports
RISI reported that the US Department of Commerce (DOC) has upheld preliminary determinations in countervailing and antidumping duty investigations on coated free sheet imports from China, Indonesia, and Korea. Announcing its final determination today the DOC said it that Chinese, Indonesian, and Korean suppliers had sold coated freesheet in the USA at less than fair value -- by 21.12% to 99.65%, 8.63%, and 0.47% to 31.55% respectively. The DOC also determined that Chinese, Indonesian and Korean suppliers had received countervailable subsidies ranging from 7.40% to 44.25%, 22.48% and 0.00 to 1.46% respectively. "Subsidies in China keep out our exports and distort global trade flows.
The Administration will continue to vigorously enforce our countervailing duty and antidumping laws, and will take appropriate remedies based on the facts presented in each case," Import Administration Asst. Sec. David Spooner said in a statement.
The Administration will continue to vigorously enforce our countervailing duty and antidumping laws, and will take appropriate remedies based on the facts presented in each case," Import Administration Asst. Sec. David Spooner said in a statement.
South America BIG Supplier of Pulp
In the past several years, South America has moved into a position of being a major worldwide source of supply for pulp. The region has low cost fiber, as well as advanced research and development laboratories for plant genetics and seed development. Brazil in particular has moved into the forefront as a supplier of pulp. Projections indicate 5 of the top 10 market pulp producers will be located in South America. In 1986, Brazil produced 3.9million tons of pulp; by 2006 this figure grew to more than 11million tons.
Tuesday, October 23, 2007
Current State of Paper Markets
Report outlining curent state of Paper market by - Deutsche Bank - Equity Research
* NEWSPRINT
Despite more attempts to increase prices (Catalyst was out with a $25/tonne price hike for Oct. 1) newsprint prices continue to decline. SP will have another go at it, with a $30 increase slated for Nov 1. Tempec announced plans to indefinitely idle a 100K/mton machine at Kapuskasing, ON and Kruger is indefinitely idling an 80K/mtpy machine in Newfoundland. Kruger also announced plans to curtail 25,000 tonnes of newsprint capacity in Quebec next month. These are the first signs that 2nd and 3rd tier players are willing to act in front of ABY/BOW merger.
* COATED GROUNDWOOD
The cyclical sleeper? Prices rose $40/ton in October as the LWC market remains extremely tight, with customers scrambling for volume. This increase comes after a solid price increase in August, with No. 5 40-lb offset rolls prices rising $35/ton, and a $5-10/ton increase in September. Shipment volumes rose 3.6% y/y in September. Kruger's reversed its decision to shutdown two of its Quebec paper mills for two weeks in response to increased demand, but also announced a 3rd price hike of the year on LWC. We also understand that European mills are beginning to trim export volumes to the US.
* UNCOATED FREE SHEET
Tepid US demand has slightly hindered implementation the full $60/ton price hike. However, the full increase is expected to be fully implemented in the next few months, with $40 of the $60 offset hike already passed through this month. Trade book prices were estimated to be up $60-70/ton in September. September UFS shipments dropped 5.0% y/y, but supply reductions are keeping the market inreasonable
* NEWSPRINT
Despite more attempts to increase prices (Catalyst was out with a $25/tonne price hike for Oct. 1) newsprint prices continue to decline. SP will have another go at it, with a $30 increase slated for Nov 1. Tempec announced plans to indefinitely idle a 100K/mton machine at Kapuskasing, ON and Kruger is indefinitely idling an 80K/mtpy machine in Newfoundland. Kruger also announced plans to curtail 25,000 tonnes of newsprint capacity in Quebec next month. These are the first signs that 2nd and 3rd tier players are willing to act in front of ABY/BOW merger.
* COATED GROUNDWOOD
The cyclical sleeper? Prices rose $40/ton in October as the LWC market remains extremely tight, with customers scrambling for volume. This increase comes after a solid price increase in August, with No. 5 40-lb offset rolls prices rising $35/ton, and a $5-10/ton increase in September. Shipment volumes rose 3.6% y/y in September. Kruger's reversed its decision to shutdown two of its Quebec paper mills for two weeks in response to increased demand, but also announced a 3rd price hike of the year on LWC. We also understand that European mills are beginning to trim export volumes to the US.
* UNCOATED FREE SHEET
Tepid US demand has slightly hindered implementation the full $60/ton price hike. However, the full increase is expected to be fully implemented in the next few months, with $40 of the $60 offset hike already passed through this month. Trade book prices were estimated to be up $60-70/ton in September. September UFS shipments dropped 5.0% y/y, but supply reductions are keeping the market inreasonable
Monday, October 22, 2007
Top North American Uncoated Freesheet Producers
RISI just released some interesting data comparing top producers for Uncoated Woodfree papers. Notice Domtar’s rise to the top…
2007
1. Domtar 33.7% market share
2. International Paper 25.2%
3. Boise Cascade 10.5%
4. Georgia Pacific 7.2%%
5. Glatfelter 3.4%
Top 5 80.0% market Share
2001
1. International Paper 32.7% Market Share
2. Domtar 15.5%
3. Boise Cascade 10.1%
4. Willamette 9.7%
5. Weyerhaeuser 8.8%
Top 5 76.8% Market Share
1996
1. International Paper 14.9% market share
2. Georgia Pacific 14.0%
3. Champion International 7.9%
4. Boise Cascade 6.5%
5. Union Camp 6.2%
6. Willamette 6.0%
7. Weyerhaeuser 5.3%
8. Domtar 5.2%
Top 5 producers 49.5% market share
2007
1. Domtar 33.7% market share
2. International Paper 25.2%
3. Boise Cascade 10.5%
4. Georgia Pacific 7.2%%
5. Glatfelter 3.4%
Top 5 80.0% market Share
2001
1. International Paper 32.7% Market Share
2. Domtar 15.5%
3. Boise Cascade 10.1%
4. Willamette 9.7%
5. Weyerhaeuser 8.8%
Top 5 76.8% Market Share
1996
1. International Paper 14.9% market share
2. Georgia Pacific 14.0%
3. Champion International 7.9%
4. Boise Cascade 6.5%
5. Union Camp 6.2%
6. Willamette 6.0%
7. Weyerhaeuser 5.3%
8. Domtar 5.2%
Top 5 producers 49.5% market share
Corrugated Container Market becoming Snug
Box volumes were up in September and inventories remain lean while operating rates averaged 98.3%. Additional good news included exports rising and imports falling. The strength of these numbers along with the rapid implementation of the recent box price hike may yield an additional price increase early next year.
Environmentally-Friendly Paper for Second Printing
Fraser Papers Inc. announced today that it had been selected to provide environmentally-friendly paper for the second printing of the U.S. edition of Harry Potter and the Deathly Hallows. Fraser Papers was one of the suppliers for the first printing of the book, which was released in July. As reported earlier by Paper.com, the paper manufactured for this book was customized and contained 30% post-consumer content and pulp certified by the Forest Stewardship Council ("FSC"), an internationally recognized organization driving responsible international forest management standards.
The coated paper market could be tightening??
North American coated paper markets have tightened dramatically in recent weeks. For the first time in several years, customers are scrambling for supply. Certainly the anti-dumping charges have kept imported paper to a minimum and havereduced supply. Imports accounted for approximately 1million tons per year.
In uncoated free sheet, Domtar continues to hint it may cut further capacity. Beneficiaries would include the two big players, Domtar and International Paper. Other beneficiaries on our coverage list would
include specialty names like Glatfelter and Wausau.
From: RISI North American Global Forest Products Conference
In uncoated free sheet, Domtar continues to hint it may cut further capacity. Beneficiaries would include the two big players, Domtar and International Paper. Other beneficiaries on our coverage list would
include specialty names like Glatfelter and Wausau.
From: RISI North American Global Forest Products Conference
Friday, October 12, 2007
Leading Paper Website Announces Price Increases
Paper.com, one of the largest online internet sites, exclusively markets paper products. They recently announced a price increase for all business papers and forms; text; cover; writing; as well as office and stationery grades. This includes popular items from mills such as International Paper, Mohawk, Smart, Fox River, Domtar, Boise, Neenah, Wausau, Finch Pryun, Xerox, and Monadnock. P. Scott Vallely, Managing Director, sited that all our mills increased price because they are experiencing additional costs related to pulp, chemicals, freight, energy, and labor. We tried to maintain pricing as long as possible, but now must pass these cost increases to our end users.
Paper.com has over 40,000 items in inventory and ready for immediate shipment. The company recently launched a new site, making it easier to search through the many popular items. They also introduced 888PaperGreat to call for assistance.
Paper.com has over 40,000 items in inventory and ready for immediate shipment. The company recently launched a new site, making it easier to search through the many popular items. They also introduced 888PaperGreat to call for assistance.
Environmentalists are upset at Sears Catalog
Associations that promote the greening of earth have voiced frustration at Sears and Kmart for their continuous use of paper from endangered forests in California and Canada and not using more recycled papers in their paper supplies. Sears is now the largest catalog company that has not taken steps toward environmental sustainability. Sears mails 425million catalogs annually – including 270million under its Lands End brand. One association, ForestEthics, has insisted that Sears begin to use more post consumer recycle waste in the catalogs.
NewPage’s Sterling Grade Line expanded
Paper.com recently introduced the newest Sterling Ultra grade offerings. The product is now available in 7, 8, and 9-point gloss. The grade has 10% post consumer waste. These new items are especially desirable for a reply card program.
Paper.com opens Environmentally Friendly ‘Green’ Store
One of the paper industrys' largest web marketing companiy outlined several steps for its end users to become eco-conscious and create cost effective printed material. The company believes that orders recycled papers and creates promotions that are good for the environment are also good for business. Sincere goodwill goes a long way and everyone is very interested in protecting the environment. Green minded end users and projects should plan beyond just using recycled paper. Virgin, recycled, and tree free paper are all very different papers. Virgin fibers are directly from trees, they are the cleanest and strongest, but have the most direct effect on the consumption of natural resources. The Forest Stewardship Council (FSC), Sustainable Forest Initiative (SFI), and Program for the Endorsement of Forest Certification (PEFC) traces paper components to its origins via third party certification. This assures end users that papers are from appropriate trees and forests and no old growth forests were used. Recycled papers account for approximately 37% of all the raw material used in domestic products. Recycled papers benefit include less energy consumed, lower green house emissions, reduced wastewater and less solid waste. Post consumer waste (PCW) is total recycled fiber and tree free is generally hand made – produced from kenaf, hemp, flax, cotton, or a combination.
Other environmentally friendly initiatives include using uncoated paper instead of coated papers. Coated, or glossy, has clay content, which is not good for recycling. Also, if you design a piece that is smaller in size – this uses less paper, chemicals, and ink, which are all better for the environment. Choice in inks is also important – soy or vegetable based versus the more popular Petroleum based is an excellent alternative. Lastly, noncomplex design and folding generates a more efficient product and thus less waste.
Paper.com can certainly assist with recycled and tree free papers – but consideration should also be considered for other environmentally friendly ideas.
Other environmentally friendly initiatives include using uncoated paper instead of coated papers. Coated, or glossy, has clay content, which is not good for recycling. Also, if you design a piece that is smaller in size – this uses less paper, chemicals, and ink, which are all better for the environment. Choice in inks is also important – soy or vegetable based versus the more popular Petroleum based is an excellent alternative. Lastly, noncomplex design and folding generates a more efficient product and thus less waste.
Paper.com can certainly assist with recycled and tree free papers – but consideration should also be considered for other environmentally friendly ideas.
Xerox Introduces new Copier that Promises to Cut Cost of Color Copies
Xerox recently introduced a new line of copiers that promises to cut the cost of color copies. Xerox, the world’s largest maker of high speed color printers, will start selling the Phaser 8860 which will generate color copies for 0.05 for full color page. Color accounts for 12 percent of the more than 30 million pages printed from Xerox copiers last year. Growth is in color and this new equipment will help.
Paper.com carries many of the Xerox papers as well as many other brands suitable for Xerox equipment.
Paper.com carries many of the Xerox papers as well as many other brands suitable for Xerox equipment.
Harry Potter New Book on Recycled Paper
The newest Harry Potter book, Deathly Hallows, consumed over 22million pounds of paper of which 6,700 tons was FSC certified. This is considered the largest paper purchase for a single book. The FSC certification confirms that the paper was from forestlands that are managed in a socially and environmentally responsible manner. Experts believe this purchase saved nearly 200,000 trees.
Paper.com, unfortunately, did not supply the paper for this book – but the site has many 100% recycled papers as well as FCI and FSC papers, in stock and ready for immediate delivery.
Paper.com, unfortunately, did not supply the paper for this book – but the site has many 100% recycled papers as well as FCI and FSC papers, in stock and ready for immediate delivery.
Mohawk Introduces New Papers for the Digital Presses
Mohawk Papers recently expanded its digital portfolio with additional i-tone products. They added heavier weights and new sheet sizes. The Mohawk Color Copy grade now has 110lbs cover. This grade is designed for Xerox’s iGen3 Digital press. The mill also has many new Via grades for the iGen3, Kodak NexPress2100, and HP Indigo digital presses.
Paper.com has all the newest digital grades, including all the Mohawk products
Paper.com has all the newest digital grades, including all the Mohawk products
Newsprint continues its downward slide
Newsprint consumption continues its decline along with paper pricing and supply of product. Demand has fallen even greater than anticipated. In 2005 total North America demand dropped over 6% to 10.4million tons – with USA daily newspaper consumption falling 5.4% or 7.5million tons. In 2006 the decline continued, as North American demand dropped to 9.7million tons. In 2007, the demand has fallen 9 months in a row. USA newspapers continue to loose circulation, pages and have made the actual newspaper publication smaller in size – all leading to less paper.
Newsprint volumes and prices remain under pressure. Industry experts expect further pressure for the balance of the year. Prices have dropped $110/ton since last September, after declining during each of the last 12 months. We expect year end results will be brutal as lower prices and higher costs will be.
The largest dynamic in the newsprint market includes the proposed combination of Abitibi (#1) and Bowater (#2). Other producers such as Catalyst, Kruger or White Birch could emerge as additional consolidators. SP Newsprint is reportedly still on the blocks. Boise appears poised to convert one of its newsprint machines to containerboard.
Newsprint volumes and prices remain under pressure. Industry experts expect further pressure for the balance of the year. Prices have dropped $110/ton since last September, after declining during each of the last 12 months. We expect year end results will be brutal as lower prices and higher costs will be.
The largest dynamic in the newsprint market includes the proposed combination of Abitibi (#1) and Bowater (#2). Other producers such as Catalyst, Kruger or White Birch could emerge as additional consolidators. SP Newsprint is reportedly still on the blocks. Boise appears poised to convert one of its newsprint machines to containerboard.
Tuesday, October 09, 2007
COATED GROUNDWOOD PAPER UPDATE
Paper.com had experienced price increases in August, with No. 5 40-lb offset rolls prices rising $35/ton. Prices continued on the website to rise in September, up another $5-10/ton. This continues the rebound from the slow demand experienced in the first half of the year, and paper manufacturers are confirminga sudden turnaround in customer demand for coated paper. Shipments rose 15.5% in July from 2006. The market is fairly tight and enjoyed more help from last week's downtime announcement from Kruger.
UNCOATED FREE SHEET UPDATE
Most of September's offset hikes which Paper.com has confirmed have stuck. All the major paper producers, including Domtar, International Paper and Boise Cascade, introduced an increase on offset roll prices by $60/ton and offset folio sheets prices by $30/ton in mid September. While demand has been steady, supply reductions are keeping the market in reasonable balance.
Paper.com, a major source of supply for printing and writing grades, was experienced an increase on the majority of its commodity grade offerings.
Paper.com, a major source of supply for printing and writing grades, was experienced an increase on the majority of its commodity grade offerings.
Leading Online Paper Marketer Introduces New Site
Paper.com, one of the leading online marketers of paper products recently
released an all new website to allow for a more efficient website. The company exclusively markets over the web. Paper.com has 46 warehouses though out the USA representing over 40,000 paper items from all the major paper producers. The company was founded by John Engel, an internet marketing expert, and P. Scott Vallely, a paper industry executive, to produce the industry’s largest web site. Paper.com focuses on office, stationery, school, scrapbook, Artist, and theme papers. The company boosts of over 7000 visitors every day.
released an all new website to allow for a more efficient website. The company exclusively markets over the web. Paper.com has 46 warehouses though out the USA representing over 40,000 paper items from all the major paper producers. The company was founded by John Engel, an internet marketing expert, and P. Scott Vallely, a paper industry executive, to produce the industry’s largest web site. Paper.com focuses on office, stationery, school, scrapbook, Artist, and theme papers. The company boosts of over 7000 visitors every day.
New Environmentally Friendly Digital Sheet Introduced
Galerie Art Digital is new digital grade from Paper.com and produced by the M-Real Paper mill. It is fairly new and is promoted as a very 'Green " sheet, made from recycled fibers.
M-real paper mill recently launching two new products in the Data Papers range of office papers at the Paperworld show in Frankfurt. Data Color Inkjet Photo Gloss, Digital, and Data Color Inkjet Photo Matt hit the market and offer customers a wider choice in a market where new technologies and particularly increased use of color applications put ever greater demands on high quality paper products. Available in text and cover weights from Paper.com.
M-real paper mill recently launching two new products in the Data Papers range of office papers at the Paperworld show in Frankfurt. Data Color Inkjet Photo Gloss, Digital, and Data Color Inkjet Photo Matt hit the market and offer customers a wider choice in a market where new technologies and particularly increased use of color applications put ever greater demands on high quality paper products. Available in text and cover weights from Paper.com.
Paper.com introduces new Environmentally Friendly Grade
Domtar EarthChoice Office Paper is an FSC-certified multifunction grade that offers guaranteed performance on high-speed copiers, laser printers, and inkjet printers and offset presses. The 92 GE brightness and FSC certification make it an ideal choice for customers who want to practice environmental responsibility on an everyday basis. It is acid-free for longer archival life. The grade is suitable for Copier, inkjet and laser and digital printers and is ideal for everyday desktop copying and printing.
Paper.com recently added this grade to its extensive line of environmentally friendly grade offerings.
Paper.com recently added this grade to its extensive line of environmentally friendly grade offerings.
Friday, October 05, 2007
MARKET PULP UPDATE
It's turning out to be a favorable pulp cycle. The pulp rally shows no signs of slowing down. The market saw a $20/ton price hike initiative on NBSK for September. Moreover, the prices of most hardwood grades rose $20- 25/ton in August, and with the market remaining tight, several producers have announced a $20-30 increase for October. The steep drop in the US dollar in recent weeksiwill provide the fuel for further attempts to boost prices. Despite the highest prices in over a decade, a strong Canadian dollar for high chip costs are squeezing Canadian mills.
Pulp continues to Climb
Parsons & Whittemore, Sappi Fine Paper North America and most other producers have informed customers that they will initiate a $20/metric ton price increase on northern bleached hardwood Kraft (NBHK) pulp shipped after October 1, boosting the industry’s list to $765. Fraser Paper started the price hikes last week. Transaction prices for NBHK have risen from $610/metric ton in January to $730, according to monthly surveys of buyers by Purchasingdata.com.
Parsons & Whittemore also plans a $20/metric ton price increase on southern bleached hardwood Kraft (SBHK) pulp in the U.S. to $750. The RISI.com subscription newsletter says SAPPI plans to raise prices $25/metric ton on three grades of NBHK pulp in North America. Its prices on aspen and mixed pulp now are slated at $750 and maple grade is at $760.
In addition to the SBHK and NBHK hikes, producers of bleached eucalyptus, birch, and hardwood-derived bleached pulp have came out with price increases.
Parsons & Whittemore also plans a $20/metric ton price increase on southern bleached hardwood Kraft (SBHK) pulp in the U.S. to $750. The RISI.com subscription newsletter says SAPPI plans to raise prices $25/metric ton on three grades of NBHK pulp in North America. Its prices on aspen and mixed pulp now are slated at $750 and maple grade is at $760.
In addition to the SBHK and NBHK hikes, producers of bleached eucalyptus, birch, and hardwood-derived bleached pulp have came out with price increases.
Fraser Papers Announces Paper Machine Downtime
Fraser Papers Inc. announced that it would take market-related downtime on the No. 6 paper machine at its East Papers operations, effective October 6, 2007, to manage inventory levels of uncoated groundwood papers. The Company expects the temporary shutdown to be two weeks in duration, dependent on market conditions.
Kruger to curtail production at two Quebec mills
Reported by - Financial Mirror –
The global paper and forest product industry's six-year-long decline in credit quality has continued in 2007,
says Moody's Investors Service in an industry update. During the year, industry participants have faced tighter liquidity conditions, a worsening slowdown in US housing construction, and, for producers in Canada, Brazil, and Chile, the negative effects of a strengthening in their national currencies.
Overall, Moody's expects the slide in credit quality to continue, particularly for North American and European based companies.
Positive rating pressure, however, is expected for the market pulp and packaging segments as prices remain strong.
The global paper and forest product industry's six-year-long decline in credit quality has continued in 2007,
says Moody's Investors Service in an industry update. During the year, industry participants have faced tighter liquidity conditions, a worsening slowdown in US housing construction, and, for producers in Canada, Brazil, and Chile, the negative effects of a strengthening in their national currencies.
Overall, Moody's expects the slide in credit quality to continue, particularly for North American and European based companies.
Positive rating pressure, however, is expected for the market pulp and packaging segments as prices remain strong.
Kruger to curtail production at two Quebec mills
Kruger Inc. announced that it will reduce the production at two of its Quebec paper mills. These production curtailments will be achieved by the shutdown of the Trois-Rivières mill, from October 28 to November 10 and the Brompton (Sherbrooke) mill from
November 17 to December 1st. Total production reductions during these periods will amount to 25,000 metric tones of newsprint, 6,000 metric tons of supercalendered paper and 8,000 metric tons of coated paper.
These interruptions will affect 1,500 employees and result from the combined effects of the increase in value of the Canadian dollar and the continued increase in production costs, including manpower, fiber supplies and energy.
November 17 to December 1st. Total production reductions during these periods will amount to 25,000 metric tones of newsprint, 6,000 metric tons of supercalendered paper and 8,000 metric tons of coated paper.
These interruptions will affect 1,500 employees and result from the combined effects of the increase in value of the Canadian dollar and the continued increase in production costs, including manpower, fiber supplies and energy.
Boise Launches Reinvented Imaging Papers Lines
Boise Paper recently announced a complete rebranding launch for four of its primary lines of paper. This aggressive and strategic rebranding effort creates distinct market-driven personalities for each of the different lines, positioning Boise Paper as a true leader in the premium and specialty papers market. These distinct brand personalities are driven by a combination of new packaging, a sharp focus on new customer demographics and in some cases, an expanded and enhanced paper offering.
The four lines that Boise will be rolling out with new branding include: Boise ASPEN, Boise's premium line of recycled papers that work for you and the environment; Boise FIREWORX, a category-changing, vibrant color line that offers Paper With Pop; Boise HD:P High-Definition Paper for high-end digital color printing needs; and Boise X-9, the tested, proven, top-selling multi-use paper formulated for premium performance in printers, copiers and fax machines.
"Boise Paper is committed to being a leader in premium and specialty papers," said Vince Phelan, marketing director, Boise Paper. "This broad rebranding effort is a great example of how Boise Paper continues to deliver "Beyond What's Expected" to our current and prospective customers. We are making bold changes to deliver bold results that add value to our customers and invite new customers to be a part of our Boise brands. These new brands are the fruits of hours of research and trials to better connect our product offering to our customers current and future paper needs."
The rebranding launch for each line of paper will occur through the end of 2007 and into the first quarter of 2008. Below are brief overviews of how each individual paper line will be rebranded:
Boise ASPEN -- This is Boise's best-in-class line of premium recycled papers that further reinforce Boise's standing as the leading manufacturer of recycled papers. Offering an impressive breadth of line, Boise ASPEN papers provide customers with high brightness and performance that customers expect from non-recycled sheets and support any company's green initiative. Boise ASPEN offerings will now include Boise ASPEN 30, Boise ASPEN 50, Boise ASPEN 100 Multi-use, Boise ASPEN Laser (Presentation Laser 30%), Boise ASPEN Color Copy, Boise ASPEN Offset & Sheet Grades, and Boise ASPEN Forms & Envelope grades. As part of the rebranding efforts for Boise ASPEN, Boise will introduce new packaging, further reinforcing the recycling and environmental elements of the paper.
Boise FIREWORX -- This is Boise's brand new line of color papers. Under the Boise FIREWORX line, Boise offers customers with 27 distinct and vibrant color offerings, great for all printing needs. Bringing fun and function together, Boise FIREWORX is a lifestyle colored paper that adds vibrancy to creative projects and attention-getting communications at home and in the workplace. From Bottle Rocket Blue to Firecracker Fuchsia, Boise FIREWORX is truly a Paper With Pop.
Boise HD:P -- This is Boise's new family of high-definition digital papers that is ideal for delivering professional-looking, colorful print projects. Providing smooth texture, crisp edges and vibrant colors, Boise HD:P papers take digitally printed documents to the next level. The entire line of Boise HD:P High-Definition Paper is laser and/or inkjet guaranteed, acid-free and carries a GE brightness rating ranging from 92-98 in a wide variety of weights and sizes to meet today's digital printing needs. The lineup includes Boise HD: P Everyday Laser, Boise HD: P Premier Print, Boise HD:P Presentation Laser & Cover, Boise HD:P Color Copy & Cover and Boise HD:P Glossy Color Laser & Cover.
Boise X-9 -- This is Boise's #1 selling multi-purpose paper. Used by businesses of all types and sizes for their everyday imaging needs, Boise X-9 delivers consistent results for a myriad of printing and copying equipment. Boise X-9 offers excellent run-ability that is third-party tested, and is a great option for high-output business needs. Boise X-9 now features a fresh new look that is familiar to the loyal user, yet conveys a more energetic feel with easy-to-view product information for those new to the brand.
Come to Paper.com for the entire product offering of Boise. Paper.com has every major paper producers' items in stock and ready for immediate delivery.
SOURCE: Boise Paper
The four lines that Boise will be rolling out with new branding include: Boise ASPEN, Boise's premium line of recycled papers that work for you and the environment; Boise FIREWORX, a category-changing, vibrant color line that offers Paper With Pop; Boise HD:P High-Definition Paper for high-end digital color printing needs; and Boise X-9, the tested, proven, top-selling multi-use paper formulated for premium performance in printers, copiers and fax machines.
"Boise Paper is committed to being a leader in premium and specialty papers," said Vince Phelan, marketing director, Boise Paper. "This broad rebranding effort is a great example of how Boise Paper continues to deliver "Beyond What's Expected" to our current and prospective customers. We are making bold changes to deliver bold results that add value to our customers and invite new customers to be a part of our Boise brands. These new brands are the fruits of hours of research and trials to better connect our product offering to our customers current and future paper needs."
The rebranding launch for each line of paper will occur through the end of 2007 and into the first quarter of 2008. Below are brief overviews of how each individual paper line will be rebranded:
Boise ASPEN -- This is Boise's best-in-class line of premium recycled papers that further reinforce Boise's standing as the leading manufacturer of recycled papers. Offering an impressive breadth of line, Boise ASPEN papers provide customers with high brightness and performance that customers expect from non-recycled sheets and support any company's green initiative. Boise ASPEN offerings will now include Boise ASPEN 30, Boise ASPEN 50, Boise ASPEN 100 Multi-use, Boise ASPEN Laser (Presentation Laser 30%), Boise ASPEN Color Copy, Boise ASPEN Offset & Sheet Grades, and Boise ASPEN Forms & Envelope grades. As part of the rebranding efforts for Boise ASPEN, Boise will introduce new packaging, further reinforcing the recycling and environmental elements of the paper.
Boise FIREWORX -- This is Boise's brand new line of color papers. Under the Boise FIREWORX line, Boise offers customers with 27 distinct and vibrant color offerings, great for all printing needs. Bringing fun and function together, Boise FIREWORX is a lifestyle colored paper that adds vibrancy to creative projects and attention-getting communications at home and in the workplace. From Bottle Rocket Blue to Firecracker Fuchsia, Boise FIREWORX is truly a Paper With Pop.
Boise HD:P -- This is Boise's new family of high-definition digital papers that is ideal for delivering professional-looking, colorful print projects. Providing smooth texture, crisp edges and vibrant colors, Boise HD:P papers take digitally printed documents to the next level. The entire line of Boise HD:P High-Definition Paper is laser and/or inkjet guaranteed, acid-free and carries a GE brightness rating ranging from 92-98 in a wide variety of weights and sizes to meet today's digital printing needs. The lineup includes Boise HD: P Everyday Laser, Boise HD: P Premier Print, Boise HD:P Presentation Laser & Cover, Boise HD:P Color Copy & Cover and Boise HD:P Glossy Color Laser & Cover.
Boise X-9 -- This is Boise's #1 selling multi-purpose paper. Used by businesses of all types and sizes for their everyday imaging needs, Boise X-9 delivers consistent results for a myriad of printing and copying equipment. Boise X-9 offers excellent run-ability that is third-party tested, and is a great option for high-output business needs. Boise X-9 now features a fresh new look that is familiar to the loyal user, yet conveys a more energetic feel with easy-to-view product information for those new to the brand.
Come to Paper.com for the entire product offering of Boise. Paper.com has every major paper producers' items in stock and ready for immediate delivery.
SOURCE: Boise Paper
Legion Paper Goes Green
New York - Legion Paper, the leading supplier of fine art paper in North America, launches a comprehensive eco-friendly paper classification system as part of their website, www.legionpaper.com. This new tool is the first of its kind within the paper industry to provide a powerful 'green' search engine. The company has partnered with Paper.com to also offer all these environmentally friendly products.
"We have a very different take on green than most paper companies," says Joshua Levine, CEO Legion Paper. "The majority of the papers we supply contain an eco-friendly story so we developed a system to highlight these green characteristics, which has turned into a valuable educational tool."
Most of the 'green' discussion in relation to the paper industry has focused on wood-based and/or recycled products. This leaves out many important products including 100% cotton papers, papers made from cork, mulberry, and handmade papers -- all of which do not require the cutting down of trees in the first place. The new Legion Paper eco-friendly website organizes each paper into five categories: Alternative Energy, Chlorine-Free, Handmade Papers, Mill Certification and Tree-Free.
"Many of our customers rely on legionpaper.com for their projects and we are continually asked about the specific 'green' qualities of our papers," added Levine. "With our new "green" interface, we are able to offer this extraordinary search tool so anyone can easily find all the eco-friendly characteristics of our papers instantly."
The new Legion green site was developed in direct response to customer demand with online traffic to legionpaper.com substantially and consistently increasing over the past 24 months. Legion Paper prides itself on outstanding customer service and this new online feature demonstrates their commitment to outstanding service and education. Additionally, Legion's digital imaging division, Moab by Legion Paper, runs on 100% wind energy and is located in the heart of the west's national parks system where there is an emphasis on living green.
Paper.com is a large reseller of all the Legion products. The Paper.com web site now has a “Green Store” for easy shopping.
SOURCE: Legion Paper
"We have a very different take on green than most paper companies," says Joshua Levine, CEO Legion Paper. "The majority of the papers we supply contain an eco-friendly story so we developed a system to highlight these green characteristics, which has turned into a valuable educational tool."
Most of the 'green' discussion in relation to the paper industry has focused on wood-based and/or recycled products. This leaves out many important products including 100% cotton papers, papers made from cork, mulberry, and handmade papers -- all of which do not require the cutting down of trees in the first place. The new Legion Paper eco-friendly website organizes each paper into five categories: Alternative Energy, Chlorine-Free, Handmade Papers, Mill Certification and Tree-Free.
"Many of our customers rely on legionpaper.com for their projects and we are continually asked about the specific 'green' qualities of our papers," added Levine. "With our new "green" interface, we are able to offer this extraordinary search tool so anyone can easily find all the eco-friendly characteristics of our papers instantly."
The new Legion green site was developed in direct response to customer demand with online traffic to legionpaper.com substantially and consistently increasing over the past 24 months. Legion Paper prides itself on outstanding customer service and this new online feature demonstrates their commitment to outstanding service and education. Additionally, Legion's digital imaging division, Moab by Legion Paper, runs on 100% wind energy and is located in the heart of the west's national parks system where there is an emphasis on living green.
Paper.com is a large reseller of all the Legion products. The Paper.com web site now has a “Green Store” for easy shopping.
SOURCE: Legion Paper
Sunday, September 23, 2007
NewPage / Cerberus Acquires StoraEnso USA mills
Stora Enso, one of the world's largest makers of paper products, is selling its North American paper manufacturing units for about $2.1 billion to an Ohio-based company, New Page, owned by the private equity firm Cerberus Capital.
The operations being sold include eight factories and will be combined with those of Cerberus-owned NewPage Holding, based in Dayton, Ohio, a North American coated paper producer employing more than 4,300 people.
The mills being sold were once part of Consolidated Papers, which was acquired by Stora Enso in a $4.8 billion deal in 2000.
Six of the mills are in Wisconsin, one is in Duluth, Minn., and the eighth is Port Hawkesbury, Nova Scotia, Canada.
Paper.com carries all the New Page paper products and many of the Stora Enso grades in stock and ready for immediate shipment.
The operations being sold include eight factories and will be combined with those of Cerberus-owned NewPage Holding, based in Dayton, Ohio, a North American coated paper producer employing more than 4,300 people.
The mills being sold were once part of Consolidated Papers, which was acquired by Stora Enso in a $4.8 billion deal in 2000.
Six of the mills are in Wisconsin, one is in Duluth, Minn., and the eighth is Port Hawkesbury, Nova Scotia, Canada.
Paper.com carries all the New Page paper products and many of the Stora Enso grades in stock and ready for immediate shipment.
Tuesday, September 18, 2007
Price Increase Summary
Paper.com is beginning to hear from all our major paper mills regarding several price increases.
As the specifics of each mill are confirmed, we will update our data.
Price increase summary as follows
Text/Cover/Writing increase of 4-7%
Coated increase of 5-7%
Uncoated offset and Opaque increase of 3-5%
Carbonless increase of 5%
Envelopes increase of 9-11%
Most are effective late September or early October. Paper.com still is marketing most items at currrent prices, management
will hold these prices firm as long as possible.
As the specifics of each mill are confirmed, we will update our data.
Price increase summary as follows
Text/Cover/Writing increase of 4-7%
Coated increase of 5-7%
Uncoated offset and Opaque increase of 3-5%
Carbonless increase of 5%
Envelopes increase of 9-11%
Most are effective late September or early October. Paper.com still is marketing most items at currrent prices, management
will hold these prices firm as long as possible.
Wednesday, September 12, 2007
Ad Spending Declines 0.3% in First Half of 2007
Total U.S. advertising expenditures fell 0.3% to $72.5 billion in the first half of 2007, according to TNS Media Intelligence. It is the first time since 2001 that ad spending declined for two consecutive quarters. Nearly all media categories were weak, with the exception of Internet and magazines, which rose 17.7% and 4.6%, respectively. Newspapers were among the hardest hit, with the category falling 5.8%.
FOEX NBSK Pulp Index Climbs
FOEX, a provider of audited, trade-registered pulp and paper indexes, said the PIX northern bleached softwood kraft (NBSK) pulp index climbed $7.79/mton to $807.79 in the week ending Sept. 11. It was the first time in four weeks that the index saw movement. The price of lightweight coated (LWC) paper fell euro 0.19/mton to euro 670.73/mton and coated woodfree fell euro 4.85/mton to euro 704.98/mton.
Monthly U.S. Printing Shipments Increased in July
U.S. printing shipments increased $138 million in July compared to the same month last year, the WhatTheyThink Economics and Research Center reported. According to the latest report, the average monthly increase in printing shipments has been $196 million since last August. Adjusted for inflation, however, shipments in July of this year were actually down by –0.6% from last year. Year-to-date shipments are down –0.9% on an adjusted basis.
EKSuccess grows through recent acquisition
GTCR Golder Rauner, LLC, one of the nation’s leading private equity firms, announced today that EK Success, a leading provider of scrapbooking and paper-based crafts products, has acquired Wilton Industries, Inc. and Dimensions Holdings, LLC. EK Success is a creative consumer products company with a major market position in the scrapbooking segment of the $30 billion U.S. craft industry. EK Success was acquired by GTCR in February 2006. The combined companies will be named Wilton Products, Inc. and be headquartered in Woodridge, Illinois.
EK Success is a creative consumer products company with the leading market position in the fast- growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success designs and markets some of the craft industry’s most respected brands of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts, such as card making and invitation creation. These include ZIG® Memory System®, Sticko®, Paper Shapers®, Jolee’s Boutique®, HERMA® and Cutter Bee®.
Paper.com markets all of the EKSuccess products and is one of the largest online marketers of scrapbook and craft papers.
EK Success is a creative consumer products company with the leading market position in the fast- growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success designs and markets some of the craft industry’s most respected brands of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts, such as card making and invitation creation. These include ZIG® Memory System®, Sticko®, Paper Shapers®, Jolee’s Boutique®, HERMA® and Cutter Bee®.
Paper.com markets all of the EKSuccess products and is one of the largest online marketers of scrapbook and craft papers.
Monday, September 10, 2007
New Announced Mill in Vietnam in trouble
After several years of construction, the Thanh Hoa Pulp and Paper mill in Vietnam is suddenly short of funds to complete the project.
The mill was originally anticipated to go on stream in 2005; the mill was expected to produce 50,000 tons of pulp and 60,000 tons of paper per year, with products to include cartons, duplex paper and packaging paper. At the end of the second stage, total production capacity would increase to an estimated 150,000 tons of pulp and 150,000 tons of paper per year.
The mill was originally anticipated to go on stream in 2005; the mill was expected to produce 50,000 tons of pulp and 60,000 tons of paper per year, with products to include cartons, duplex paper and packaging paper. At the end of the second stage, total production capacity would increase to an estimated 150,000 tons of pulp and 150,000 tons of paper per year.
Boise Cascade Paper Mills may be Sold
Boise Cascade in considering selling its paper, packaging and newsprint divisions for $1.63billion to Aldabra 2 Acquisition. Aldabra was formed by Nathan Leight and Jason Weiss of Terrapin Partners. They agreed to pay $1.34billion cash and the balance in shares. The company would be run by Alexander Toeldte – Boise’s current Executive Vice President.
In 2004, Madison Dearborn acquired Boise and split the corporation into manufacturing and retail (OfficeMax). Madison Dearborn has no immediate plans of spinning off the retain division nor the wood and building product divisions.
In 2004, Madison Dearborn acquired Boise and split the corporation into manufacturing and retail (OfficeMax). Madison Dearborn has no immediate plans of spinning off the retain division nor the wood and building product divisions.
Friday, September 07, 2007
MARKET PULP Update
The strength in market pulp prices shows no signs of abating. The prices of most hardwood grades rose $20-25/ton in August, and there is yet another $20/mton price hike initiative on NBSK for September. Production curtailments caused by the woodland workers strike in BC is helping to keep the market tight. Despite the high prices, the strong Canadian Dollar and high wood chip costs are keeping margins barely positive at a number of mills.
NEWSPRINT Market Update
Despite the announcement of a $25/mton price hike initiative for September, newsprint prices have remained under pressure. Prices slipped $10/ton in August. The combination of low prices, a strong Canadian Dollar and surging chip costs in British Columbia suggest a near-term bottom may be close. Howe Sound Pulp & Paper and Catalyst have recently announced capacity
withdrawals. In other signs of financial pressure, Kruger recently announced the idling of an SC machine in Quebec
withdrawals. In other signs of financial pressure, Kruger recently announced the idling of an SC machine in Quebec
UNCOATED FREE SHEET UPDATE
It might be another cut-size (business papers) price increase in the works. Producers are attempting to raise offset rolls prices by $60/ton and offset folio sheets prices $30/ton. While demand has been sluggish, supply reductions are
keeping the market in reasonable balance. Domtar recently announced the indefinite shut of a 285,000 tpy Paper Machine at Dryden, ON. With pulp prices still rising and the market in a seasonal strong period, we wouldn't be surprised by another cut-size attempt.
keeping the market in reasonable balance. Domtar recently announced the indefinite shut of a 285,000 tpy Paper Machine at Dryden, ON. With pulp prices still rising and the market in a seasonal strong period, we wouldn't be surprised by another cut-size attempt.
Canada Paper Producers feel increased currency pinch
The currency increase versus USDollar is tightening around Canada's forest sector. This week, White Birch Paper, Catalyst Paper
announced more staff cuts, and both Domtar & Kruger announced more machine shuts.
announced more staff cuts, and both Domtar & Kruger announced more machine shuts.
Coated Grades See Price Increase
Verso Paper announced price. Verso Paper (previously owed by International Paper) is increasing the price of all coated mechanical products by $3.25/cwt ($65.00/ ton).
This increase applies to all coated mechanical (groundwood) grades including, but not
limited to, the following brands:
Liberty - All grades, basis weights and finishes
Liberty G - All grades, basis weights and finishes
Advocate Offset - All grades, basis weights and finishes
Advocate Roto - All grades, basis weights and finishes
This increase is in addition to the previously announced increase that took
effect for shipments as of July 1, 2007.
Stora Enso also announce price increase for their coated grades appling to:
NovaPress ,PolarisPress ,SolarisPress, StellaPress, TerraPress, CapriPress , ConsoPress, MagniPress , SuperiorPress, PubliPress, and ExoPress
The 7% increase applies to all gloss finish products.
This increase applies to all coated mechanical (groundwood) grades including, but not
limited to, the following brands:
Liberty - All grades, basis weights and finishes
Liberty G - All grades, basis weights and finishes
Advocate Offset - All grades, basis weights and finishes
Advocate Roto - All grades, basis weights and finishes
This increase is in addition to the previously announced increase that took
effect for shipments as of July 1, 2007.
Stora Enso also announce price increase for their coated grades appling to:
NovaPress ,PolarisPress ,SolarisPress, StellaPress, TerraPress, CapriPress , ConsoPress, MagniPress , SuperiorPress, PubliPress, and ExoPress
The 7% increase applies to all gloss finish products.
Friday, August 24, 2007
xpedx Acquires Central Lewmar Companies
Paper and graphics supplies distributor xpedx will acquire the Central Lewmar companies based in Newark, NJ, from Philadelphia-based private equity firm Chrysalis Capital Partners for roughly $185 million.
Central Lewmar, which distributes printing and publishing papers, recorded more than $900 million in revenues for 2006.
Central Lewmar, which distributes printing and publishing papers, recorded more than $900 million in revenues for 2006.
International Paper announces $60/ton price hike for uncoated Freesheet
International Paper (IP) has announced to customers a price increase for its 50-lb offset rolls and opaques of US$60/ton
effective with shipments Sept. 10. A $30/ton increase for offset sheets was also announced.
This is the first increase for uncoated Freesheet 50-lb offset grades since mid-2006.
Paper.com will has all the International Paper grades and will ship as little as one ream.
effective with shipments Sept. 10. A $30/ton increase for offset sheets was also announced.
This is the first increase for uncoated Freesheet 50-lb offset grades since mid-2006.
Paper.com will has all the International Paper grades and will ship as little as one ream.
Update on Paper Industry
In the past several years, we have witnessed a closer match of supply to demand – given the shuttering of paper machines and plants. Also, the global markets are alive and well – with China quickly catching up to USA capacity. In 2006 North America capacity witnessed its biggest one year drop – shedding nearly 3.9million tons – with the biggest effects on Containerboard and Uncoated Writing papers. The only new capacity announced is in Brazil, China, and Russia – not the USA. The curtailment of capacity, coupled with increased raw material costs yielded many price increases in most grade sectors. Some of the bigger stories of production changes include Boise converting 440,000 tons from uncoated to pressure sensitive label; International Paper conversion of 350,000 tons from uncoated to linerboard; UPM lightweight coated machine no longer producing 495,000 tons, Verso shutting down 505,000 of coated paper, and Domtar and Georgia Pacific shuttering over 200,000 of uncoated writing papers. Most likely, prices will remain firm for balance of year.
Not all Digital Papers are created Equal
Customized printing for effective communications is increasing and therefore so are Digital printers. In the past, paper mills have attempted to produce one universal paper grade for all the different digital printers, only to now conclude that each printer requires different paper attributes for the highest reproduction. Printers are demanding more of the paper. Hewlett-Packard (HP) is the leading digital printer, commanding nearly 42% market share. This printer has always demanded very different specifications than Kodak, Xerox, and Xeikon. Typically, the HP printer requires a special coating.
Paper.com has nearly every Digital Paper for all the various printers. Mills include Mohawk, International Paper, StoraEnso, NewPage, Finch, Smart, Domtar and Wausau. They have an experienced team ready to answer questions about the different paper characteristics of each grade.
Paper.com has nearly every Digital Paper for all the various printers. Mills include Mohawk, International Paper, StoraEnso, NewPage, Finch, Smart, Domtar and Wausau. They have an experienced team ready to answer questions about the different paper characteristics of each grade.
Sappi introduces new multicoated woodfree paper for regular print
Press Release - Sappi is introducing Quatro, a multicoated woodfree brand providing a straightforward selection of papers for regular day-to-day print applications. The new brand, which supports Sappi's existing coated fine paper range, is available in sheets and in reels for sheeting, both in gloss and silk surfaces. Basis weights are from 115 - 250g/m2 for Quatro Gloss and from 90 - 250g/m2 for Quatro Silk.
Paper.com has many of the SAPPI grades ready for immediate shipment.
Paper.com has many of the SAPPI grades ready for immediate shipment.
Wausau Paper adds higher caliper and more bulk to Astropaque Cover
Press Release from Wausau - Responding to customer demand for a stronger Astropaque® Cover, Wausau Paper announces an additional cover line that boasts a higher caliper and more bulk. Perfect for heavy-duty applications, such as business cards, brochures and presentation folders, the new offering is a complementary addition to the existing Astropaque Cover and text weights.
"The new Astropaque extension now offers customers a choice of an extremely smooth, superior printing surface product or a higher caliper, stronger product for those end use applications that require bulk and stiffness," said Jeff Fox, director of marketing for Wausau Paper's Printing & Writing Sector. "Both provide the attention-getting brightness and signature
reliability, paired with Astropaque text weights, these two selections are ideal for creating professional, cohesive images."
The high caliper Astropaque Cover is available in three Cover basis weights with the following calipers: 9.1 for 65 lb., 11.0 for 80 lb., and 13.7 for 100 lb Cover. With 98 Brightness, Astropaque provides a great printing surface, providing a sharper image reproduction and feel. The entire Astropaque line, including the new high caliper Cover is FSC Certified. Both the smooth and high caliper Astropaque Covers can be paired with Astropaque text weights, which range from 50 lb. to 100 lb.
Paper.com is a proud distributor of Wausau has all the paper grades in stock and ready for immediate delivery.
"The new Astropaque extension now offers customers a choice of an extremely smooth, superior printing surface product or a higher caliper, stronger product for those end use applications that require bulk and stiffness," said Jeff Fox, director of marketing for Wausau Paper's Printing & Writing Sector. "Both provide the attention-getting brightness and signature
reliability, paired with Astropaque text weights, these two selections are ideal for creating professional, cohesive images."
The high caliper Astropaque Cover is available in three Cover basis weights with the following calipers: 9.1 for 65 lb., 11.0 for 80 lb., and 13.7 for 100 lb Cover. With 98 Brightness, Astropaque provides a great printing surface, providing a sharper image reproduction and feel. The entire Astropaque line, including the new high caliper Cover is FSC Certified. Both the smooth and high caliper Astropaque Covers can be paired with Astropaque text weights, which range from 50 lb. to 100 lb.
Paper.com is a proud distributor of Wausau has all the paper grades in stock and ready for immediate delivery.
Papers Battling to Gain Traction
From Mark Wilde
Paper companies are battling to gain pricing (and earnings) traction. While prices have moved upward in many categories, margins remain anemic in most markets. Dogged by sluggish domestic demand, producers simply haven't made
much incremental headway in getting past higher costs.The good news revolves around supply reductions as well as
long-awaited benefits from the weaker US Dollar. Capacity continues to exit many markets. On the trade front, imports are falling and exports are rising. The bad news is that domestic demand continues to lag. Domestic volumes in virtually all categories are down during the first half of 2007. The net effect? While reported operating rates look constructive in many categories, underlying domestic markets have not been as tight, and pricing gains have been hard-fought in most cases
Paper companies are battling to gain pricing (and earnings) traction. While prices have moved upward in many categories, margins remain anemic in most markets. Dogged by sluggish domestic demand, producers simply haven't made
much incremental headway in getting past higher costs.The good news revolves around supply reductions as well as
long-awaited benefits from the weaker US Dollar. Capacity continues to exit many markets. On the trade front, imports are falling and exports are rising. The bad news is that domestic demand continues to lag. Domestic volumes in virtually all categories are down during the first half of 2007. The net effect? While reported operating rates look constructive in many categories, underlying domestic markets have not been as tight, and pricing gains have been hard-fought in most cases
Recovered Paper Rate Increased
The United States recovered paper rate in 2006 reached a record 53.4% of paper and paperboard (including OCC) consumed in the U.S. (53.5 million tons), the American Forest & Paper Assn. (AF&PA) reports. This is the second year in a row that the paper recovery rate has increased. The 53.5 million tons represent an increase in recovery of 83.7% since 1990, when the paper industry undertook its first serious commitment to advance recycling in the U.S. Currently Americans recover nearly 360 lb of paper and paperboard for every person in the U.S., up from 233 lb per person in 1990.
Cost to Produce Recycled Papers Increases
The demand for environmentally friendly papers has been so successful that the growth is chewing away at sources of supply. The primary fibers include Old Corragated Containers (OCC), Old Newspapers (ONP), and Sorted Office Papers (SOP). With a finite supply and robust demand, the cost continues to increase and markets like China (export 11million tons) and India (export 866,000 tons) compete for USA paper mills for fiber. Fiber prices have aggressively increased.
Paper.com recently introduced an environmentally friendly green store on the website featuring thousands of items.
Paper.com recently introduced an environmentally friendly green store on the website featuring thousands of items.
Many Pulp Grades hit 11 year high
As previously reported, Chemical Market Pulp Grades are at their highest price in 11 years and no relief is seen for buyers. Note: Pulp grades are based several attributes
-Origin – Northern, Southern
-Wood Type – Softwood, Hardwood
-Process – kraft sulfate, sulfite
-Bleach – bleached, semi bleached, unbleached
Northern Bleached Softwood Kraft (NBSK) is considered the benchmark and is has a current list price of $830/Metric Ton.
Worldwide shipments in 2006 were 38.9million tons. Strong current demand is witnessed from China. Given mill closures, increased demand from Asia, and good USA demand – we forecast pricing to remain firm throughout the balance of year.
Recent mill closures, which supplied market pulp, include Bowater, Neenah, Tembec, and Weyerhaeuser.
-Origin – Northern, Southern
-Wood Type – Softwood, Hardwood
-Process – kraft sulfate, sulfite
-Bleach – bleached, semi bleached, unbleached
Northern Bleached Softwood Kraft (NBSK) is considered the benchmark and is has a current list price of $830/Metric Ton.
Worldwide shipments in 2006 were 38.9million tons. Strong current demand is witnessed from China. Given mill closures, increased demand from Asia, and good USA demand – we forecast pricing to remain firm throughout the balance of year.
Recent mill closures, which supplied market pulp, include Bowater, Neenah, Tembec, and Weyerhaeuser.
Marcal Paper Mill Finds Buyer
The bankrupt Marcal Paper Mills, located in New Jersey, secured $60billion in funding from Apollo Group. Note Apollo Group recently purchased the International Paper coated mills. Marcal produces 160,000 tons / yr of tissue. Original challenge included high Energy rates.
Dirigo Paper Still Down
Dirigo Paper’s facility in Gilman, VT continues to not operate due to soft commodity markets. The mill management recently announced it would be back manufacturing paper by mid September.
Brookfield acquires another Paper Mill
Brookfield recently purchased all the assets of Longview Fibre for $2.15billion. Although Brookfield’s primary interest was the 600,000 acres of timber in the Pacific Northwest, they also purchased 10 paper machines producing 763,000 tons/yr of linerboard and 387,000 tons/yr of Kraft. These papermaking facilities are considered high cost.
Top 30 Book Manufactures
Company Book Sales / Revenue
Visant Corp $632million
Quebecor World $628million
Bertelsmann $263million
Courier $221million
Transcontinental $142million
Phoenix Color $109million
Walsworth $102million
Maple-Vale $81million
Webcrafters $70million
Edwards Brothers $68million
Visant Corp $632million
Quebecor World $628million
Bertelsmann $263million
Courier $221million
Transcontinental $142million
Phoenix Color $109million
Walsworth $102million
Maple-Vale $81million
Webcrafters $70million
Edwards Brothers $68million
Sunday, August 05, 2007
Xerox Introduces new Digital Sheet
Xerox recently induced a high yield sheet for Digital Printers.
The pulp used for Xerox’s new uncoated 45 lb. text (17.7 lb. bond/67 gsm) sheet is produced by mechanically grinding wood into papermaking pulp instead of using the chemical pulping process traditional for producing digital business papers. The mechanical process converts more than 90 percent of wood weight to papermaking fiber, double the 45 percent yield from chemical pulping.
Xerox High Yield Business Paper has 10 percent more sheets per pound yet performs like 50 lb. text (20 lb. bond/75 gsm) made by a chemical pulping process, which is the most widely used type of paper for digital printing and copying. This reduces the cost per roll or 500-sheet ream, helping print providers increase profit margins.
With opacity - show-through resistance - equal to that of traditional 60 lb. text (24 lb. bond/90 gsm), the result is high quality, two-side printing where images and text on one side are barely visible from the other side of the paper.
High Yield Business Paper has a level of 84 brightness, common brightness is 92 brightness.
Paper.com has many of the Xerox items available and ready for immediate shipment.
The pulp used for Xerox’s new uncoated 45 lb. text (17.7 lb. bond/67 gsm) sheet is produced by mechanically grinding wood into papermaking pulp instead of using the chemical pulping process traditional for producing digital business papers. The mechanical process converts more than 90 percent of wood weight to papermaking fiber, double the 45 percent yield from chemical pulping.
Xerox High Yield Business Paper has 10 percent more sheets per pound yet performs like 50 lb. text (20 lb. bond/75 gsm) made by a chemical pulping process, which is the most widely used type of paper for digital printing and copying. This reduces the cost per roll or 500-sheet ream, helping print providers increase profit margins.
With opacity - show-through resistance - equal to that of traditional 60 lb. text (24 lb. bond/90 gsm), the result is high quality, two-side printing where images and text on one side are barely visible from the other side of the paper.
High Yield Business Paper has a level of 84 brightness, common brightness is 92 brightness.
Paper.com has many of the Xerox items available and ready for immediate shipment.
Indications for Strong Uncoated Paper Market
Xerox recently issued a study for the USA paper market
US Shipments were strong in April and May
-No expectation of traditional seasonal lull in June and July
-Shipments down YTD 2.2%
-Apparent consumption was down 3.3% through May that is better than numbers earlier in the year of 5-6%
Operating rates continue to be strong
-Average 91% through May
-Xerographic market remains tight
Mills continue to announce capacity reduction
-Domtar 125K tons in Maine
More announcements expected
-Dirigo 70K tons Vermont
-Neenah 39K tons Ohio
The RISI index indicates that transactional prices overachieved the expected increase level by 2.5%
-This hasn’t happened in the last 10 years
-RISI index looks 30 days in the rear
These average prices were achieved in June
-The major mills have been successful in eliminating significant discounts to the market to achieve price increases more quickly
RISI is not predicting pricing to decline during the balance of 2007
-10% price increase over the 2006 full year average YTD
-Predicting sustained increases over time
Uncoated free Imports down 5% from March to April
-European market experiencing similar conditions to the US
US swing tons utilized for coated freesheet due to the current dynamics in the coated industry
US Shipments were strong in April and May
-No expectation of traditional seasonal lull in June and July
-Shipments down YTD 2.2%
-Apparent consumption was down 3.3% through May that is better than numbers earlier in the year of 5-6%
Operating rates continue to be strong
-Average 91% through May
-Xerographic market remains tight
Mills continue to announce capacity reduction
-Domtar 125K tons in Maine
More announcements expected
-Dirigo 70K tons Vermont
-Neenah 39K tons Ohio
The RISI index indicates that transactional prices overachieved the expected increase level by 2.5%
-This hasn’t happened in the last 10 years
-RISI index looks 30 days in the rear
These average prices were achieved in June
-The major mills have been successful in eliminating significant discounts to the market to achieve price increases more quickly
RISI is not predicting pricing to decline during the balance of 2007
-10% price increase over the 2006 full year average YTD
-Predicting sustained increases over time
Uncoated free Imports down 5% from March to April
-European market experiencing similar conditions to the US
US swing tons utilized for coated freesheet due to the current dynamics in the coated industry
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