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.

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.

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.

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.

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.

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

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.

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.

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

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.

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

What’s the Best Way to Print Digital Photos?

AARP recently researched several methods of printing Digital Photos. They compared Photo Labs, Online Services, Home Printers, and Kiosks. The results illustrated that Photo Labs produced the best quality and uploading photos to a web service (online) that mails prints is a breeze. When speed counts, the home printer is best. When it comes to price Kodakgallery.com makes 4x6 prints for 15 cents and Shutterfly.com are as low as 12 cents apiece. Most lab prints cost 12 to 20 cents apiece. Home prints, if many are printed, are also reasonably priced.
Paper.com has all the major photo papers for home printing of digital prints.

Freedonia Group Releases new study on USA Commercial Printers

Study Highlights:
-Revenues for the US commercial printing industry, which includes pre-press and printing services on a job order basis, are expected to increase 1.3 percent per year to $82 billion in 2011.

-Growth in commercial printing revenues will be driven by ongoing technological changes that make it easier to create higher quality and more customized prints at a faster rate. Gains will also be aided by ongoing adjustments in print production in response to changing consumer preferences, particularly in terms of cost, timing and sizes of print runs.

-Digital printing is projected to achieve the strongest gains through 2011 because of the process' lower cost, quick turnaround and ease of customization for short printing runs.

FiberMark acquired another Paper Producer

The specialty paper market recently witnessed a consolidation when FiberMark purchased Permalin Products and PermaFiber. Permalin produces more than 30 product lines for book publishing and tag / label markets. PermaFiber provides wet strength products to the laundry and drycleaner markets• The specialty paper market recently witnessed a consolidation when FiberMark purchased Permalin Products and PermaFiber. Permalin produces more than 30 product lines for book publishing and tag / label markets. PermaFiber provides wet strength products to the laundry and drycleaner markets.

New York Times Newspaper reduces size … again

Effective with August 6 printing, the New York Times Newspaper will reduce the width of its pages by an inch and a half. The newspaper will be 12” – which is becoming the new standard for the industry. The move will reduce expenses.

International Paper Company Orders new Paper Machine

International Paper ordered a new Voith Paper machine for it’s plant in Brazil. The machine will be operational in 2009 and will produce 200,000 tons of uncoated Woodfree paper.

Bowater to Curtail Paper Machine

Bowater will indefinitely shut down a paper machine that produces 88,000 tons of book paper. The machine was in Dolbeau, QC.

Neenah Paper introduces new Products

The Renew grade line called Classic Linen introduced new finishes that have a textured finish. The company also released a Solar White, double thick cover weight for the Eames Grade line.
Paper.com has the entire line of Eames and Classic Linen.