Shipments of printing and writing grades for August were weak, especially for coated paper and newsprint. Coated Free sheet demand fell nearly 13% while publication (groundwood coated ) fell over 20%. Many producers curtailed equipment - Kruger 17,000tons; Verso 30,000tons; NewPage 200,000tons and Domtar will take down time. September pricing was stable, after a $5/ton increase in August and $20 in July (note: manufactures HAD announced a $50/ton summer increase). My previous update announced a $60/ton increase for October 1 - this remains in jeopardy.
Meanwhile, uncoated Freesheet (business papers) are witnessing competition from imports - the likes of Brazil and Europe as well as from mills that have turned off their coaters and are now producing uncoated papers. August saw a decline in shipments of nearly 8%.
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