Publishing Executive News
When the mayor of New York, a high-ranking city commissioner and other Big Apple bigwigs gather at the Empire State Building for a press conference, you can usually expect the announcement of some big public works project, such as a new skyscraper. What brought these dignitaries together, however, was a different sort of public works: a campaign to encourage recycling among the city’s 8 million residents, led by a $3 million advertising blitz that will put
posters on buses and subways, as well as commercials in movie theaters and on Time Warner cable channels.
Paper.com introduced a Green store last year http://paper.com/department/green/ with thousands of environmentally friendly products to support citizens that seek sustainable forest initiatives.
Thursday, March 20, 2008
Uncoated Free Sheet Update
Uncoated white paper prices continue to push upward - trade sources suggest that overall price levels are up $40-60/ton since beginning of year. The cut-size (desktop and copier papers) market remains the strongest. Domtar, International Paper, Georgia Pacific and others are out with a $60/ton March price hike on 50-lb offset rolls, with other Uncoated Free Sheet grades set to follow. The increase comes shortly after many producers announced a $60/ton
increase on cut-size paper for February.
Paper.com still has products available on site that have not been increased, subject to availability.
increase on cut-size paper for February.
Paper.com still has products available on site that have not been increased, subject to availability.
The declining North American UFS market – causes and future trends
By John Maine, Vice President, World Graphic Papers, RISI
The North American uncoated freesheet market used to be a high growth market. It consistently outpaced the growth in the economy by 1-2% per year as business copiers, home printers, faxes and a myriad of other end-uses expanded rapidly, fueled by technological development and plummeting prices for business machines.
This trend ended abruptly in 1999. Almost overnight, the uncoated freesheet market morphed from a profitable high-growth business, to one that has been plagued by declining demand and lackluster profitability. It took the industry years to recognize the change in trend, and chronic oversupply dampened profitability in the market.
What Caused the Market to Decline?
There were two broad factors that led to the decline in the market:
1. The loss of print markets to electronics
2. The loss of market share to alternative grades of paper
When discussing the decline in the uncoated freesheet market, most people refer to the primary cause as the shift to electronic technology.
This was indeed the primary driver behind the declines in demand for tablet, envelope, stationery, carbonless paper, technical papers and form bond.
However, a very important and often overlooked fact is that a third of the market share loss since 1999 was caused by a shift to alternative grades of paper. The introduction and successful growth of uncoated mechanical offset substitutes in particular has displaced about 840,000 tons of uncoated freesheet demand in North America since 1999. Furthermore, the rapid growth of cheap, mostly Asian, coated sheets has also displaced about 250,000 tons of uncoated freesheet sheets, mostly in the “cover, text and bristol” category.
The North American uncoated freesheet market used to be a high growth market. It consistently outpaced the growth in the economy by 1-2% per year as business copiers, home printers, faxes and a myriad of other end-uses expanded rapidly, fueled by technological development and plummeting prices for business machines.
This trend ended abruptly in 1999. Almost overnight, the uncoated freesheet market morphed from a profitable high-growth business, to one that has been plagued by declining demand and lackluster profitability. It took the industry years to recognize the change in trend, and chronic oversupply dampened profitability in the market.
What Caused the Market to Decline?
There were two broad factors that led to the decline in the market:
1. The loss of print markets to electronics
2. The loss of market share to alternative grades of paper
When discussing the decline in the uncoated freesheet market, most people refer to the primary cause as the shift to electronic technology.
This was indeed the primary driver behind the declines in demand for tablet, envelope, stationery, carbonless paper, technical papers and form bond.
However, a very important and often overlooked fact is that a third of the market share loss since 1999 was caused by a shift to alternative grades of paper. The introduction and successful growth of uncoated mechanical offset substitutes in particular has displaced about 840,000 tons of uncoated freesheet demand in North America since 1999. Furthermore, the rapid growth of cheap, mostly Asian, coated sheets has also displaced about 250,000 tons of uncoated freesheet sheets, mostly in the “cover, text and bristol” category.
Major Newspapers continue 4-Year Decline
In just four years the top newspapers in the U.S. have collectively lost about 1.4 million copies in daily circulation. But since the reported numbers come out every six months, the overall decline for individual papers may not hit home formany. Each fall off is usually in the low- to mid-single digits -- but it sure adds up. The industry has lost about 10% of circulation overall in the past
four years among the leading papers.
four years among the leading papers.
Hewlett Packard adds Inkjet Printer to Products
HP is the largest printer maker and has introduced a faster Indigo Press as well as
a wide format inkjet press.
The Indigo 7000prints 120 four-color pages a minute, while the inkjet press can print newspapers, books and signs.
The Indigo Press models have captured 49% of the entire digital press market share for high volume business. Xerox’s IGen has 36%, and Kodak’s NexPress enjoys 15%.
Paper.com has an entire section on site with all the major digital and inkjet paper grades.
a wide format inkjet press.
The Indigo 7000prints 120 four-color pages a minute, while the inkjet press can print newspapers, books and signs.
The Indigo Press models have captured 49% of the entire digital press market share for high volume business. Xerox’s IGen has 36%, and Kodak’s NexPress enjoys 15%.
Paper.com has an entire section on site with all the major digital and inkjet paper grades.
U.S. cotton prices are surging ahead
By Tom Stundza – Purchasing Magazine
U.S. cotton prices are rising this month, as global prices are the highest in a decade because world demand is exceeding supply for the second consecutive crop season. The Cotlook A Index of world cotton prices has averaged 70¢/lb so far in 2007-2008 .The price average is 11¢ higher than during the first seven months of the previous year.
As a result of the gap between world production and consumption, world cotton ending stocks are projected to decline this crop season by 9%, or 1.1 million tons, to 11.5 million tons. But some analysts say it could slide as low as 10.7 million tons, further boosting spring and summer prices.
What does this mean for Paper? All our premium 25-100% cotton grades are directly affected by this increase in cost for this fiber. Paper.com tries to maintain level prices, but when raw material costs escalate like this, it becomes nearly impossible
U.S. cotton prices are rising this month, as global prices are the highest in a decade because world demand is exceeding supply for the second consecutive crop season. The Cotlook A Index of world cotton prices has averaged 70¢/lb so far in 2007-2008 .The price average is 11¢ higher than during the first seven months of the previous year.
As a result of the gap between world production and consumption, world cotton ending stocks are projected to decline this crop season by 9%, or 1.1 million tons, to 11.5 million tons. But some analysts say it could slide as low as 10.7 million tons, further boosting spring and summer prices.
What does this mean for Paper? All our premium 25-100% cotton grades are directly affected by this increase in cost for this fiber. Paper.com tries to maintain level prices, but when raw material costs escalate like this, it becomes nearly impossible
Tuesday, March 04, 2008
Paper Mills close and Paper Demand decreases
We often report on the paper industry’s recent initiative of asset rationalization whereby mills are shuttering capacity or consolidating with other manufacturers. This trend is forecasted to continue into the foreseeable future. Recently, we outlined NewPage, Domtar and Fraser papers curtailing production equipment. StoraEnso consolidated its North American facilities with NewPage, as did Bowater with Abitibi. Internet is certainly taking a piece of printing demand and the higher cost of postage makes mailing
printed material more expensive. Even FSI (Free Standing Inserts – those promotions you get in the newspaper) have declined 5% from 2006. One expert commented that even Television advertising is no longer a leading influencer and loosing its effectiveness.
Most paper prices have increased; this certainly has not assisted with demand. One comment on all the sudden paper price increases is these advances have not kept up with the cost increases for such expenses as fiber, energy, shipping and chemicals. Look for more paper price increases and less paper consumed in 2008.
One industry expert stated that although demand for paper is decreasing approximately 2% a year, the producers are shuttering 6% of capacity each year.
printed material more expensive. Even FSI (Free Standing Inserts – those promotions you get in the newspaper) have declined 5% from 2006. One expert commented that even Television advertising is no longer a leading influencer and loosing its effectiveness.
Most paper prices have increased; this certainly has not assisted with demand. One comment on all the sudden paper price increases is these advances have not kept up with the cost increases for such expenses as fiber, energy, shipping and chemicals. Look for more paper price increases and less paper consumed in 2008.
One industry expert stated that although demand for paper is decreasing approximately 2% a year, the producers are shuttering 6% of capacity each year.
Paper Industry continues to see GREEN Initiatives
Simone and Schuster, a large trade book publisher, just announced a new paper policy that requires at least 10% of the papers they purchase must originate from FSC Certified forests by 2012. The policy also calls for increase in recycled content from 10% to 25%.
In another news related event, Domtar recently shipped a newly developed specialized lightweight bible paper that is FSC Certificated. RRDonnelley will publish the bible for publisher Thomas Nelson. This is the first FSC bible.
In another news related event, Domtar recently shipped a newly developed specialized lightweight bible paper that is FSC Certificated. RRDonnelley will publish the bible for publisher Thomas Nelson. This is the first FSC bible.
NewPage confirms Plans for mills
NewPage confirmed its plans for the new capacity acquired with the purchase of StoraEnso.
No11 Paper Machine – Rumford, ME will close permanently
No 43 and 44 and pulp mill in Niagara, WI will be closed permanently.
No 95 in Kimberly, WI will be permanently shut down
Converting mill in Chillicothe, OH will be shut down permanently
No11 Paper Machine – Rumford, ME will close permanently
No 43 and 44 and pulp mill in Niagara, WI will be closed permanently.
No 95 in Kimberly, WI will be permanently shut down
Converting mill in Chillicothe, OH will be shut down permanently
Heidelberg outlines Growth by Printing Process
Heidelberg outlined sales growth rates by Primary printing process as
Flexography 5.5%
Combo sheet-web 5%
Digital 3.8%
Sheetfed 1.7%
Coldset Web 1.3%
Heatset Web .12%
Flexography 5.5%
Combo sheet-web 5%
Digital 3.8%
Sheetfed 1.7%
Coldset Web 1.3%
Heatset Web .12%
Update on Coated Publication Groundwood Papers
The major publication producers such as Kruger, Myllykoski, Catalyst, AbitibiBowater and NewPage have announced a $60/ton LWC price increase for early April. UPM and Verso are
expected to follow. The current market is very tight, with backlogs of 10 to12 weeks.
We reported prices rose $30-60/ton in January. The price on 40# LWC have risen $190/ton between June of 2007 and January of 2008.
expected to follow. The current market is very tight, with backlogs of 10 to12 weeks.
We reported prices rose $30-60/ton in January. The price on 40# LWC have risen $190/ton between June of 2007 and January of 2008.
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