St. Francisville Mill Shut could revive US Coated Paper Markets

US paper analysts say Tembec's plan to indefinitely idle its 325,000 tons/yr St. Francisville, LA, coated paper mill next month
is positive for the sector and for major North American producers like NewPage, Stora Enso, Sappi, Verso and Bowater.
The facility is classified as a coated free sheet producer (CFS) because the recent replacement of its groundwood pulp line with a Kraft fiber line last year qualifies the product as coated free sheet. The capacity of the
mill's three machines represents 6.6% of US coated free sheet capacity, or 6.4% of coated groundwood production.
The pending capacity closure, together with countervailing duties and anti-dumping duties on US imports of Asian coated paper, could end recent weakness in coated paper markets and precipitate a potentially steep upturn
in the second half of the year, according to Lehman Bros. analyst Peter Ruschmeier.