Wednesday, March 28, 2007

Profile of Coated Freesheet Grades

Coated Freesheet (CFS), also called Woodfree, are coated grades at the premium end of the publication grade spectrum and are used for high end catalogues, magazines, catalogues, annual reports, and advertising. Papers are rated according to gloss levels (matte, dull, gloss, cast coated), brightness levels (85-96); basis weight ranges from 50 -100lbs. Production capacity in North America is 4,560,000 tons - 420,000tons lower than last year because of machine curtailments. Operating rates in 2005 were only 88% slight improvement was witnessed in 2006 to 93%. We also note Europe producers forecast curtailing 560,000 tons in 2007.
We believe Coated Freesheet demand will continue to be sluggish.

Top North American Coated Freesheet producers
Mill Capacity Mkt Share
SAPPI 1,400,000 28%
StoraEnso 1,340,000 27%
NewPage 730,000 14.5%
Verso 560,000 11%
Tembec 310,000 6%

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