Thursday, October 30, 2008
Appleton Reduces Carbonless Capacity
According to Appleton, its Appleton Plant has historically been the first of the company’s facilities to be affected by changing demand for carbonless paper. Unprecedented economic conditions worldwide have compounded the effects of the ongoing decline in the use of business forms made from carbonless paper. Despite Appleton’s recent success at increasing its share of the world’s carbonless paper market, a sharp decline in demand for the product has created excess production capacity and staffing levels at the Appleton Plant.
Paper.com has all the Appleton carbonless products ready for immediate shipment.
Verso Paper to Take Coated Paper Downtime
October 28, 2008 - Verso Paper today announced that it intends to take approximately 50,000 tons of downtime related to coated groundwood production, primarily during the fourth quarter of 2008.
The specific timing and facilities impacted to achieve this curtailment will be determined as the fourth quarter progresses, Verso said.
This downtime is in addition to the approximately 43,000 tons of coated groundwood downtime that Verso has already taken or announced in the second half of this year, the company added.
“We remain committed to running our manufacturing operations in a manner to achieve a balance between our supply of paper and the demand for paper by our customers,” said Verso president and CEO Mike Jackson. “Based on what we currently see relative to demand and inventory levels, this additional downtime is necessary to help us maintain that balance.”
Verso's coated groundwood paper is used in catalogs and magazines.
Appleton Prevails in Trade Case Against Foreign Competitors
Paper.com markets many of Appleton's paper products.
In-Plant Printers Continue to Grow
Brochures
Newsletters
Business Forms
Pamphlets
Manuals
More than half reported majority of the pieces printed were variable data printing for such jobs as,
Address labels
Recipients name
Whole paragraph of text
Interestingly, the vast majority state they have an in-plant printing center for more than convenience and service - most are a profit center!
Paper.com, a major website with 40,000 paper items, is a big supplier to these in-plant printers. The company will fulfill as little as one ream of paper and ships within 24 hours.
Tuesday, October 28, 2008
Watch your International Source!
Unless they choose paper from a known source, with a verifiable supply chain, many North American paper buyers risk unknowingly supporting environmentally destructive practices. Paper processing that is not well regulated can cause air and water pollution, especially in countries where environmental policies are inadequate or not well enforced.
Note; nearly 80% of US mills use recovered paper and are certified by third party associations. Thirty-eight percent of wood fiber used in the United States for paper production comes from recovered paper, or post-consumer recycled fiber.
USA Newspapers Continue to Struggle
Wednesday, October 22, 2008
Rachael Ray Goes Green
Paper Industry Continues Sustainability to Environment
Of note, the USA publishers currently print 18,000 magazines and less than 1% print on recycled paper consistently. This might be because paper made from post consumer fiber typically costs a little more.
Longview Fiber closes paper machine
Fiber President Frank McCone says the slowing economy reduced demand for products produced at the No. 9 machine, including lightweight containerboard used in corrugated boxes and Kraft paper used in cement bags.
McShane says the move is a business decision and the company will re-evaluate whether to restart the machine next year.
The pulp and paper mill was sold to Brookfield Asset Management for $2.15 billion last year, ending 80 years of local family management.
Some Printers Growing
Monday, October 20, 2008
Wausau on Target for Paper Machine Shut Down
Containerboard Market
Newsprint Pricing
UNCOATED FREE SHEET UPDATE
prices. Shipments through September were own 5%.
Bleached Paperboard SBS Market
Company/Capacity/mkt share
International Paper/1,520,000/25%
MeadWestvaco/1,350,000/22%
Georgia Pacific/815,000/13.5%
Rank Group/765,000/12.5%
Potlatch/550,000/12%
Versa on Track with Mill Transition
project transitioning the #1 paper machine (which had produced publication paper) will produce specialty coated papers. This will effect 84,000 tons of production.
Quebecor World Continues with Parade Magazine
Thursday, October 16, 2008
Container Board Market Softens
* Weak shipments, higher inventories
September containerboard & box numbers showed a sharp decline in shipment volumes and higher inventory levels. While we think that they exaggerate just how bad demand is, there is little question that conditions are weak. The $60/ton price initiative for Oct. appears to be dead. The real question is whether the industry can keep prices from falling. We think it will take aggressive action by the industry to reduce supply.
* Shipments - sharply lower
Box volumes fell 1.9% y/y in Sept., but adj. for two more shipping days this yr, they fell 11.3% y/y on an "avg. week" basis. Most observers tend to focus on the avg. week number, which would make the volumes look truly egregious. We think that the "real" number is a blend of the two, or a decline of about 6.6% y/y. Although this is by far the worst y/y blended comp this year, we think they may exaggerate the weakness in the mkt. Sept. '07 was a difficult comp,
and Aug. was a suspiciously strong month, suggesting that some business may have been pulled forward into August this year.
* Inventories - higher, again
Sept. saw inventories move higher again. Combined mill and box plant inventories rose 90K tons m/m. The last 10 yrs, inventories typically rose by an avg. of just 11K tons in Sept. meaning that inventory build relative to seasonal expectations was 89K tons. This follows a
negative variance of 72K tons in August. Total inventories now stand at 2.45MM tons. We would no longer characterize them as particularly lean on a historical basis, though they do remain below avgerage.
* Prices - $60/ton initiative a question mark
We think that it's now clear that the $60/ton price hike initiative for October is a dead issue. The big question is whether the industry will be able to retain the $55/ton price hike which was implemented in July. A number of factors are working against the industry, including soft demand, rising inventories, and a rising US$. We think that it will take aggressive action by the industry to maintain prices.
Wednesday, October 15, 2008
Magazine Ad Pages Down 12.9% in Q3
Cost of Producing Paper Finally Declines
Mark Andy Press Manufacture Sold
Newprint Prices Continue Downward
Thursday, October 09, 2008
Coated Paper Market Challenged
Pricing on heavier weights (free sheet) are doing somewhat better I would imagine there is pressure to 'give-back' at least a portion of the recent price increase. I note, many coated free sheet manufacturers can turn off the coater and produce uncoated free sheet, yielding less coated supply.
Pulp Markets Weak
Expect more temporary market related curtailment in upcoming months.
RISI Reveals top Pulp and Papre Companies
Of note is the growth of European companies now on this list.
The website, Paper.com, markets many of the products from these producers.
Monday, October 06, 2008
Glatfelter Introduces Video on Paper Making
job of explaining the pulp and paper manufacturing process. The presentation takes the viewer through two fully integrated pulp and paper mills. The tour also outlines Glatfelter’s management of the environment.
Paper.com also has this link to Glatfelter, at www.paper.com and the site markets all the Glatfelter carbonless papers. The direct link is http://www.glatfelter.com/learning/interactive_tour.aspx
Heidelberg Posts Quarterly Loss of $28 Million
HEIDELBERG, GERMANY—According to its preliminary results, Heidelberger Druckmaschinen AG (a manufacturer of printing presses) will post a second quarter loss of as much as $28 million on sales of about $1.1 billion, a 10 percent decrease compared to the same period last year. Its restructuring costs in the quarter could be as much as an additional $28 million.
RRD, Houghton Mifflin Harcourt Reach Accord
CHICAGO—RR Donnelley and Houghton Mifflin Harcourt Publishing have agreed on an $875 million multiyear print management contract extension. The deal expands on the previous relationship between the printer and publisher. Houghton Mifflin Harcourt is a leading publisher of instructional materials for pre-K through grade 12 schools.
European Fine Paper Deliveries Unchanged in August
Thursday, October 02, 2008
Wausau Announces FSC for Astrobrights
Mohawk Paper Mill Will Hold Prices
Domtar, Canfor Reduce NBSK Pulp Prices
Domtar Announces New CEO
Uncoated Mechanical (Groundwood) Papers Update
At a glance
2008 estimate
USA Shipments 2,100,000 tons
USA Consumption 6,200,000 tons
Canada shipments 4,300,000 tons
Top 5 producers / Capacity / Market Share
AbitibiBowater / 2,530,000 / 38.5%
Catalyst / 890,000 / 13.5%
NewPage / 890,000 / 13.5%
Fraser Paper / 500,000 / 7.5%
Irving / 440,000 / 7%