As previously reported by Paper.com, the US paper industry capacity has decreased to less than 100 million tons or 1.6% reduction from 2005. Two primary reasons sited include competition from imports and electronic substitution.
NEWSPRINT
US capacity has been on a steady decline – falling from an all time high of 7.5million tons in 2000 to 5.5milion tons in 2006 (down 26%). This trend is estimated to continue.
UNCOATED MECHANICAL (Value added newsprint)
Capacity has increased to 2.26million tons and slated to slightly increase for next several years.
COATED MECHANICAL PAPER (used for catalogues and publications)
Capacity is down to 4.7million tons. It is believed this level should remain steady for next 2 years.
COATED FREESHEET (upscale magazines and reference)
Capacity for this grade has expanded and many machines that were making mechanical coated grades have upgraded equipment to now produce Coated Free Sheet. Total capacity for 2006 was 5.31million tons.
UNCOATED FREESHEET
Capacity for this grade has trended down since 2000 high of 15.2million tons. 2006 capacity was 13.4million tons. Many of the older machines were shuttered.
Forecasts are for additional decline of 2.5% in 2007 and 1.5% in 2008.
Monday, July 02, 2007
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