Coy Paper Company LLC and Paper.com - not only offer more paper grades than any other website, industry expert, P. Scott Vallely, also keeps you up to date on what is happening in the paper industry..... usually before it is public information.
Monday, April 28, 2008
Smart reintroduces Passport Grade
Smart Papers has recently upgraded and added four new colors to its Passport line, which now boosts 30% post consumer recycled fiber. The full product line, now offered by Paper.com LLC include 14 colors in both smooth and felt finishes. The Paper.com web site markets the complete line, ready for immediate shipment.
North American Printing / Writing Statistics
From PaperAge
Uncoated Free sheet
2007 shipments 11,665 million tons (down 4.4% 2006)
Imports 543 million tons
Demand 11,757 million tons (down 5.5% 2006)
Total Printing and Writing Papers
2007 shipments 27,379 million tons (down 0.8% 2006)
Imports 3,298 million tons
Demand 29,457 million tons (down 3.0% 2006)
Uncoated Free sheet
2007 shipments 11,665 million tons (down 4.4% 2006)
Imports 543 million tons
Demand 11,757 million tons (down 5.5% 2006)
Total Printing and Writing Papers
2007 shipments 27,379 million tons (down 0.8% 2006)
Imports 3,298 million tons
Demand 29,457 million tons (down 3.0% 2006)
North American Uncoated Market Capacity Shrinks
Producers of Uncoated Wood Free papers have curtailed over 2million tons of capacity since January 2007. We look for additional shuttering of equipment and increased paper prices during 2008. Two price increase announcements have already occurred in first 4 months of 2008. We have noted a steady decrease in demand, and 2006 to 2007 illustrated this with a 5.5% decrease. While the uncoated capacity decreased to 13million tons, the entire Printing and Writing market also witnessed a decline to 32.5million tons (3% decrease). The reduction started in the late 1990s. Today, this reduction is greatly assisted by the substitution of electronic communication and continuous increase in postal rates. Those mills that must buy fiber (pulp) because they are not integrated were the most inefficient, and therefore the first to shut down. Many mills suffer with inability to increase pricing enough to cover the advancement of costs such as fiber, chemicals, energy, labor, and shipping.
Uncoated Freesheet Pricing
Uncoated free sheet prices continued to rise in April, this after the $60/ton price hike initiatives announced for March are all in place.
Business Papers, (copy papers) prices rose $50/ton in March and
another $10/tons announced for April. Offset roll prices rose $30/ton in March and another $20 in April. At the same time, demand appears to be
easing.
Business Papers, (copy papers) prices rose $50/ton in March and
another $10/tons announced for April. Offset roll prices rose $30/ton in March and another $20 in April. At the same time, demand appears to be
easing.
Demand for Printing Papers
While the North American market is witnessing decreased demand, emerging markets such as Brazil, Russia, India and China are enjoying increased demand. These countries have both a rising population as well as increased household incomes. As the North American manufactures’ consolidate and introduce the rationalization of assets these other countries are building new paper machines.
Worldwide, we see global demand increasing, at a decreasing rate; more color, less monochrome desk top printing; Offset printing will decrease and digital (variable) printing will increase; and, Direct mail will increase at a decreasing rate.
Our prediction is North America will look for more personalized, better quality printing. Color copiers and color laser printers as well as digital presses will become more popular.
Paper.com, a leading web based marketer of paper, has focused on high quality laser papers as well as digital papers to service this growth. The site firmly believes the future is in personalized marketing communications in color. They also offer most of the grades in an environmentally friendly version.
Worldwide, we see global demand increasing, at a decreasing rate; more color, less monochrome desk top printing; Offset printing will decrease and digital (variable) printing will increase; and, Direct mail will increase at a decreasing rate.
Our prediction is North America will look for more personalized, better quality printing. Color copiers and color laser printers as well as digital presses will become more popular.
Paper.com, a leading web based marketer of paper, has focused on high quality laser papers as well as digital papers to service this growth. The site firmly believes the future is in personalized marketing communications in color. They also offer most of the grades in an environmentally friendly version.
N.A. Printing/Writing Paper Inventories Decline
Total North American printing and writing paper mill inventories plunged -19.3% to 2.0 million tons in March compared to 2.5 million tons in March 2007, the Pulp and Paper Products Council reported. Shipments and demand for total printing and writing papers were down -4.9% and -4.7% respectively. North American mills operated at 94% (shipments-to-capacity) compared to 92% in the year-ago period. Total production dropped 6.5% to 2.25 million tonnes.
Imported Lightweight Thermal Papers may see New Duty
Recently, the US Department of Commerce announced its preliminary decision to apply a duty ranging from 5.7% to nearly 60% to certain Chinese and German producers. The study, introduced by Appleton Papers, outlines subsidies to producers of lightweight thermal papers. These are papers used for such items as gas and grocery store receipts, sometimes known as point of purchase sales receipts. Final determination will be announced later this summer.
Newsprint Pricing
April prices for 30-lb ‘standard’ newsprint raised $20/ton to $660/tons, this after,
4 of 6 consecutive $20/ton price advances were all implemented. Implementation of the last 2
installments would take prices to $700/ton by June. Further price moves may be ahead.
4 of 6 consecutive $20/ton price advances were all implemented. Implementation of the last 2
installments would take prices to $700/ton by June. Further price moves may be ahead.
Wednesday, April 23, 2008
Oji Starts US$1.95 Billion Paper Project in China
Japan’s Oji Paper Group has begun construction on a $1.95 billon paper project in Nantong, east China’s Jiangsu Province, after five years of preparation. A joint venture company named Jiangsu Oji Paper Co Ltd was set up last year, with Oji accounting for 90% of the investment and the Nantong Corporation the remainder. The first phase of the project is scheduled for 2010 with a 400,000 tonne/yr woodfree paper machine. The startup of the mill’s second 400,000 tonne/yr fine paper machine was pushed back to 2015 from 2012.
Rising Raw Materials for Paper producers
Rising raw material costs continue to reduce paper industry margins. Domtar issued a release today warning of $35-45MM in incremental raw material costs for the corporation. Energy, fiber, chemicals and transportation costs are all on the increase. The first quarter for 2008 increase comes on top of $21MM in additional raw material costs in forth quarter of 2007. Look for more paper price increases from manufactures, just to stay whole!! Domtar, International Paper, and Boise – the 3 big producers, are already preparing end users for an announcement. Companies, such as Paper.com - the largest web based marketer of paper, often are forced to pass these price increases along. The low margins in the paper industry just does not allow for the site to absorb the new price advancements.
Hardwood pulp prices creep higher
By Tom Stundza – Purchasing Magazine
Several hardwood pulp producers had trouble getting paper mills to accept all of a $30/metric ton price increase this month, but will continue pushing buyers in May. The purchasingdata.com survey of buyers matches data in the Pulp and Paper Week newsletter that northern bleached hardwood kraft pulp cost an average $810/metric ton in April, up just $5 from March. AbitibiBowater, Alberta-Pacific and Marubeni Pulp & Paper North had sought $835.
Several hardwood pulp producers had trouble getting paper mills to accept all of a $30/metric ton price increase this month, but will continue pushing buyers in May. The purchasingdata.com survey of buyers matches data in the Pulp and Paper Week newsletter that northern bleached hardwood kraft pulp cost an average $810/metric ton in April, up just $5 from March. AbitibiBowater, Alberta-Pacific and Marubeni Pulp & Paper North had sought $835.
COATED GROUNDWOOD MARKET UPDATE
Prices have been announced to increase $60 - 75/ton in April on most coated publication grades.
The industry witnessed shipments rose over 10% so far this year illustrating strong conditions. However, current market demand illustrates more tonnage available because of high paper prices and a slower economy as well as announced reductions in some cataloguing budgets.
The industry witnessed shipments rose over 10% so far this year illustrating strong conditions. However, current market demand illustrates more tonnage available because of high paper prices and a slower economy as well as announced reductions in some cataloguing budgets.
Newsprint Demand continues to decline at a brisk pace
Consumption of paper at the U.S. dailies for the first two months of 2008 fell 11.6% . Part of the issue is that newspaper widths continue to drop, with 44" widths now becoming common. However, a bright spot is that the 7.2% decline in total U.S. consumption for the first two months is noticeably less than the double digit declines seen in the first half of 2007. Also, overseas exports showed strong growth in the first two months of 2008 – up 25.1%.
Domtar Selling Paper Line to SMART Papers
Domtar Corp. is selling its text, cover and writing product line of papers to SMART Papers of Hamilton, OH, an independent manufacturer and marketer of premium cast-coated, matte-coated and uncoated printing papers. Closing is scheduled for April 21. Domtar grades designated by the agreement are Solutions, Feltweave, Nekoosa Linen, Nekoosa Bond, Nekoosa 25% Cotton, Proterra and Skytone. Paper.com will market all these new Smart Paper products.
PAPER OR PLASTIC?
From New York Times Magazine April 20, 2008 by CLAY RISEN
It sounds like a big step forward in environmental awareness — Whole Foods, the eco-friendly grocery chain, will ban conventional plastic shopping bags in its 270 stores. San Francisco has banned them in some places; so have Uganda and Bangladesh. But paper bags, it turns out, are hardly an ideal replacement. To ensure sturdier bags, most producers use primarily new paper, which means cutting down more trees. Then chemicals are used in the production of the bags to give them strength. According to a study by Franklin Associates, a consulting firm, plastic bags require significantly less energy than paper over the course of their life cycle, from manufacturing to transportation. Indeed, because paper bags are seven times bulkier, on average, than plastic bags, it takes a lot more energy to transport paper bags to grocery stores. Bulk matters on the other end too: paper bags take up nine times as much room in landfills, and recycling plastic uses 91 percent less energy than recycling paper. Which isn’t to say that Whole Foods has it wrong about plastic bags. Most are made from a nonrenewable resource, petroleum, and contain their own mix of toxic chemicals. They may be more energy-efficient with recycling, but only about 1 to 3 percent of plastic bags are recycled, compared with about 10 to 15 percent of paper bags. And millions of the 100 billion bags Americans throw away each year end up as litter, clogging storm drains and choking sea animals. A third way may be the only good choice. As part of its ban on regular plastic bags, for instance, San Francisco is encouraging stores to switch to cornstarch-derived plastic bags, which break down in about a month and release no harmful chemicals. And many stores have started to encourage shoppers to bring reusable cloth bags, or to offer them for sale at a cheap price.
Paper.com recently introduced a Green Store on site that carries all the popular 'earth friendly' paper grades.
It sounds like a big step forward in environmental awareness — Whole Foods, the eco-friendly grocery chain, will ban conventional plastic shopping bags in its 270 stores. San Francisco has banned them in some places; so have Uganda and Bangladesh. But paper bags, it turns out, are hardly an ideal replacement. To ensure sturdier bags, most producers use primarily new paper, which means cutting down more trees. Then chemicals are used in the production of the bags to give them strength. According to a study by Franklin Associates, a consulting firm, plastic bags require significantly less energy than paper over the course of their life cycle, from manufacturing to transportation. Indeed, because paper bags are seven times bulkier, on average, than plastic bags, it takes a lot more energy to transport paper bags to grocery stores. Bulk matters on the other end too: paper bags take up nine times as much room in landfills, and recycling plastic uses 91 percent less energy than recycling paper. Which isn’t to say that Whole Foods has it wrong about plastic bags. Most are made from a nonrenewable resource, petroleum, and contain their own mix of toxic chemicals. They may be more energy-efficient with recycling, but only about 1 to 3 percent of plastic bags are recycled, compared with about 10 to 15 percent of paper bags. And millions of the 100 billion bags Americans throw away each year end up as litter, clogging storm drains and choking sea animals. A third way may be the only good choice. As part of its ban on regular plastic bags, for instance, San Francisco is encouraging stores to switch to cornstarch-derived plastic bags, which break down in about a month and release no harmful chemicals. And many stores have started to encourage shoppers to bring reusable cloth bags, or to offer them for sale at a cheap price.
Paper.com recently introduced a Green Store on site that carries all the popular 'earth friendly' paper grades.
SMART Papers Modernizes Synergy Writing, Text And Cover Brand With New Colors, 100% PCW Fibers And FSC-Certified Papers
SMART Papers has modernized and expanded its high-value, premium uncoated Synergy writing, text and cover brand with four new fashionable colors and new heavyweight papers. Selected papers feature 100% post-consumer fiber and Forest Stewardship Council certification.
Synergy is the fifth major brand improvement by SMART Papers in the last year, underscoring the U.S. premium papermaker’s expanded commitment to designers and printers who specify writing, text and cover papers. The company’s other brand upgrades are Genesis, Pegasus, Carnival and Passport.
SMART Papers is the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers. Synergy, with hundreds of options combining colors, textures, weights and sizes, is one of the company’s many high-quality uncoated brands. It provides graphics professionals a contemporary color palette, distinctive finishes, cotton sheets and environmentally responsible options.
sheet. Weights range from 24-pound writing, 70- to 100-pound text and 80-pound cover to 130-pound double thick cover.
Synergy is also meeting growing demand for environmentally responsible papers with a 92-bright White and elegant Natural, which are 100% PCW and FSC certified. These colors are available in seven basis weights, including two new cover weights and multiple sheet sizes. The remaining Synergy colors are manufactured with 30% PCW or 25% cotton fiber.
Synergy’s four new fashionable colors include the rich earth tones of Squash, Toffee and Sienna, as well as the cool, pale-blue Wisteria. The majority of the 16 colors, from 95-bright Pure White to Serious Black, are available in Smooth and Felt finishes. The new Squash and Toffee also are available in Linen.
Synergy’s elegant 25% cotton sheet is available in three colors, two basis weights and Smooth and Light Cockle finishes. The cotton sheets feature a random watermark with the universal recycled symbol.
The Smooth and Laid text finishes and 25% cotton sheets are guaranteed to run on copiers, laser and inkjet printers. All sheets are acid free and archival, process chlorine-free and elemental chlorine-free.
Selected Synergy cover stocks are certified for use on HP Indigo presses and available through the recently announced i-Xpress for HP Indigo Paper Program. The HP Indigo-compatible sheets are available for shipment within eight business days from date of order. Minimum order is two cartons.
Synergy applications include annual reports, invitations, stationery, brochures, packaging, craft and hobby, greeting cards, business cards, pocket folders and hang tags. Envelopes are also available.
Paper.com has all the Smart Paper items, in stock and ready for immediate shipment.
SOURCE: SMART Papers
Synergy is the fifth major brand improvement by SMART Papers in the last year, underscoring the U.S. premium papermaker’s expanded commitment to designers and printers who specify writing, text and cover papers. The company’s other brand upgrades are Genesis, Pegasus, Carnival and Passport.
SMART Papers is the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers. Synergy, with hundreds of options combining colors, textures, weights and sizes, is one of the company’s many high-quality uncoated brands. It provides graphics professionals a contemporary color palette, distinctive finishes, cotton sheets and environmentally responsible options.
sheet. Weights range from 24-pound writing, 70- to 100-pound text and 80-pound cover to 130-pound double thick cover.
Synergy is also meeting growing demand for environmentally responsible papers with a 92-bright White and elegant Natural, which are 100% PCW and FSC certified. These colors are available in seven basis weights, including two new cover weights and multiple sheet sizes. The remaining Synergy colors are manufactured with 30% PCW or 25% cotton fiber.
Synergy’s four new fashionable colors include the rich earth tones of Squash, Toffee and Sienna, as well as the cool, pale-blue Wisteria. The majority of the 16 colors, from 95-bright Pure White to Serious Black, are available in Smooth and Felt finishes. The new Squash and Toffee also are available in Linen.
Synergy’s elegant 25% cotton sheet is available in three colors, two basis weights and Smooth and Light Cockle finishes. The cotton sheets feature a random watermark with the universal recycled symbol.
The Smooth and Laid text finishes and 25% cotton sheets are guaranteed to run on copiers, laser and inkjet printers. All sheets are acid free and archival, process chlorine-free and elemental chlorine-free.
Selected Synergy cover stocks are certified for use on HP Indigo presses and available through the recently announced i-Xpress for HP Indigo Paper Program. The HP Indigo-compatible sheets are available for shipment within eight business days from date of order. Minimum order is two cartons.
Synergy applications include annual reports, invitations, stationery, brochures, packaging, craft and hobby, greeting cards, business cards, pocket folders and hang tags. Envelopes are also available.
Paper.com has all the Smart Paper items, in stock and ready for immediate shipment.
SOURCE: SMART Papers
South American Paper Industry
Report form Deutche bank after visit to Latin and South America
No signs of a looming surge in South American white paper exports.
There are only 2 major Latin uncoated white paper producers:
International Paper and Suzano.
Both are focused on producing for the local (Brazil) and regional (South America) markets. All other Latin players are focused on expanding market pulp capacity for exports. A constant message was, "produce pulp in low-cost locations, produce paper close to the customer."
The falling US$ has been "good news/bad news" for many Latin companies.
The bad news? Most firms produce US$-denominated commodities, typically with most costs in local currencies. Thus, as the Brazilian and Chilean currencies have appreciated, production costs have risen in US$ terms. The good news? The Latin producers still enjoy among the lowest costs in the world. At the same time, rising currencies and other issues are forcing high-cost producers in Canada & Europe to shutter capacity. This is resulting in higher-than-expected prices.
No signs of a looming surge in South American white paper exports.
There are only 2 major Latin uncoated white paper producers:
International Paper and Suzano.
Both are focused on producing for the local (Brazil) and regional (South America) markets. All other Latin players are focused on expanding market pulp capacity for exports. A constant message was, "produce pulp in low-cost locations, produce paper close to the customer."
The falling US$ has been "good news/bad news" for many Latin companies.
The bad news? Most firms produce US$-denominated commodities, typically with most costs in local currencies. Thus, as the Brazilian and Chilean currencies have appreciated, production costs have risen in US$ terms. The good news? The Latin producers still enjoy among the lowest costs in the world. At the same time, rising currencies and other issues are forcing high-cost producers in Canada & Europe to shutter capacity. This is resulting in higher-than-expected prices.
Smart Labels
Today's smart labels come in many forms and functions, not just RFID.
by Leah Genuario
Smart label sales are expected to double from the 2006 estimate of 5,000 million units to 10,000 million units by 2011, according to Labels, a study published in December 2007 by The Freedonia Group. The study defines smart labels as devices capable of incorporating data and manufactured with read/write capabilities. It places emphasis on RFID labels, stating that the technology “promises to revolutionize applications from supply chain and inventory management to health care, libraries and air travel.” In addition, “dramatic gains are thus expected, both in extant and emerging uses.”
by Leah Genuario
Smart label sales are expected to double from the 2006 estimate of 5,000 million units to 10,000 million units by 2011, according to Labels, a study published in December 2007 by The Freedonia Group. The study defines smart labels as devices capable of incorporating data and manufactured with read/write capabilities. It places emphasis on RFID labels, stating that the technology “promises to revolutionize applications from supply chain and inventory management to health care, libraries and air travel.” In addition, “dramatic gains are thus expected, both in extant and emerging uses.”
Quebecor World Signs Contracts
Quebecor World continues to operate under bankruptcy protection, and it will likely remember those entities who continued to support the printer. . .as well as those who turned their backs on the venerable printer.
That turnaround faces a treacherous road, for now. Quebecor World has opted to close its Maggot, Quebec facility. The plant produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
They received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Companies extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform. Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland. The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.
However, its own parent, Quebecor Inc., may switch to another printer to handle some of its magazine titles. Publications TVA, Quebec’s largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications, says a Quebecor spokesman. The spokesman cited “practical and logistical reasons” being mulled. No decision has been made, and the vast majority of TVA publications will continue to be printed by Quebecor World.
That turnaround faces a treacherous road, for now. Quebecor World has opted to close its Maggot, Quebec facility. The plant produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
They received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Companies extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform. Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland. The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.
However, its own parent, Quebecor Inc., may switch to another printer to handle some of its magazine titles. Publications TVA, Quebec’s largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications, says a Quebecor spokesman. The spokesman cited “practical and logistical reasons” being mulled. No decision has been made, and the vast majority of TVA publications will continue to be printed by Quebecor World.
Thursday, April 03, 2008
U.S. Forest Service Survey Reveals Positive Impacts
The most recent United States Department of Agriculture (USDA)
Forest Service data confirms that United States forestland is roughly as abundant today as it was 100 years ago. The Forest Service’s Resource Planning Act 2007 (RPA) data reveals both state and regional increases in forestland across the country.
Key findings in the report -
There are 750 million acres of forestland in the U.S. today, about the same as in 1907.
11 states had increases of more than 25 percent over the last century, nine had increases of in excess of 30 percent.
Overall, forestland in the northern U.S. has increased by nearly 30 percent.
Forest Service data confirms that United States forestland is roughly as abundant today as it was 100 years ago. The Forest Service’s Resource Planning Act 2007 (RPA) data reveals both state and regional increases in forestland across the country.
Key findings in the report -
There are 750 million acres of forestland in the U.S. today, about the same as in 1907.
11 states had increases of more than 25 percent over the last century, nine had increases of in excess of 30 percent.
Overall, forestland in the northern U.S. has increased by nearly 30 percent.
Pulp Mills Boost Prices ….. Again
Pulp producers are informing customers it will increase northern bleached hardwood Kraft (NBHK) pulp prices by $30 per ton, reports RISI, the forest products news service. New list price on NBHK would rise to $835/metric ton in North America. NBSK prices remained flat in March at $880/mton. At $900/mton, fluff prices are now up $170/mton over the last 18 months. As pulp costs increase, paper prices will also advance
Coated FreeSheet market Update
Coated Freesheet are those papers used for higher end publications. These grades are generally chosen for their brightness and gloss characteristics. The top producers in USA include (Mill / capacity 000 / Market Share%)
NewPage / 2,235 / 40%
SAPPI / 1,390 / 25%
Verso / 595 / 10.5%
Appleton / 315 / 5.5%
Tembec / 310 / 5.5%
This market continues to be very tight. The producers have consolidated and rationalized assets with shuttering equipment to generate operating rates of 98%. Demand is actually down nearly 6%.
NewPage / 2,235 / 40%
SAPPI / 1,390 / 25%
Verso / 595 / 10.5%
Appleton / 315 / 5.5%
Tembec / 310 / 5.5%
This market continues to be very tight. The producers have consolidated and rationalized assets with shuttering equipment to generate operating rates of 98%. Demand is actually down nearly 6%.
Marcal Paper Mill Purchased by Fund
The bankruptcy court approved a $160million purchase price for Highland Capital to purchase Marcel Paper Company.
Staples ends Relationship with Asia Pulp and Paper
After many years of importing ‘economical’ copy paper from Asia Pulp and Paper, Staples announced it would not longer purchase product from this source. This accounted for nearly 10% of the the paper Staples used for their private “red box’ brand. The company was pressured to stop supporting this vendor because of the lack of adherence to environmental mandates.
Fraser curtails two Paper Machines
Fraser will indefinitely curtail production on two paper machines (#13 and #14) at the Groveton, NH mill on April 13th. These two are in addition to the #12 machine shut down in late 2007. Fraser’s management sited poor economics.
Printing Sales up in 2007
PIA/GATF reported on their survey results for forth quarter of 2007 that printer sales increased 2.35%. The survey confirmed that larger printers grew faster than printers with fewer than 50 employees. Printers continued to site energy as the #1 cost increase for 2007 (followed by employee benefits and paper costs).
UNCOATED FREE SHEET Market Update
Demand for uncoated, business papers, increased slightly so far this year. A substantial portion of the $60/ton price hike initiatives on Uncoated free sheet grades were implemented in March. Business paper prices rose $50/ton, while Offset roll prices rose $30/ton.
COATED GROUNDWOOD Market Update
Publication paper prices remained flat in March, but producers have announced a $60/ton price increase for early April. Due to tight markets, NewPage announced it would delay closing its Niagara, WI, mill, with 215,000 tons of capacity, until the Fall. Production costs on components such as pulp, energy, chemicals, and shipping costs continue to increase.
White Birch Purchases SP Newsprint
We reported that White Birch and SP Newsprint were in discussions on an acquisition; White Birch just announced $350million purchase of SP Newsprint.
Linerboard price hike flops
By Tom Stundza – Purchasing Magazine
North American $50/ton containerboard price increase has failed to stick in March because of deteriorating demand for boxes, according to RISI, the forest products news service. All seven major containerboard mills had fallen in line with the price hike but this month’s buyer surveys by Purchasingdata.com confirm that the market price average for 42-lb Kraft linerboard remains at $555.
RISI says there has been strong resistance from independent box converters, who believe they would be unable pass through any increase in finished box prices. Some linerboard producers may try again in April or May--although weak box demand and growing containerboard inventories in a worsening U.S. economy could make that difficult, says analyst Ross Gilardi at Merrill Lynch & Co. He says he expects box demand to remain weak for some weeks, “which could make it challenging for box producers to pass a price increase through to customers.”
North American $50/ton containerboard price increase has failed to stick in March because of deteriorating demand for boxes, according to RISI, the forest products news service. All seven major containerboard mills had fallen in line with the price hike but this month’s buyer surveys by Purchasingdata.com confirm that the market price average for 42-lb Kraft linerboard remains at $555.
RISI says there has been strong resistance from independent box converters, who believe they would be unable pass through any increase in finished box prices. Some linerboard producers may try again in April or May--although weak box demand and growing containerboard inventories in a worsening U.S. economy could make that difficult, says analyst Ross Gilardi at Merrill Lynch & Co. He says he expects box demand to remain weak for some weeks, “which could make it challenging for box producers to pass a price increase through to customers.”