Thursday, January 31, 2008
Valentine Paper Closed
Meriturn Partners has elected to shutter the Valentine Paper Mill in Lockport, LA. This mill produced 60,000 tons/year of specialty papers (wallpaper base, medical, food service, thermal base). The production will go to other Meriturn owned paper mills. Dunn Paper in Port Huron, MI will absorb 60% of the tonnage.
Catalyst Paper Extends mill Shutdown
The Elk Falls newsprint mill in Campbell River, BC will eliminate 38,000 tons of production. They announced that PM1 would remain curtailed through the first quarter, mainly due to shortage of fiber.
USA Shipments of labels up
The USA label printers forecast shipments to increase 5.1% annually to $18.3 billion in 2011. This is according to study conducted by Freedonia Group, based in Cleveland, Ohio. The majority of this growth continues to be from pressure sensitive labels, although this segment is beginning to witness competition from other label applications such as stretch sleeve and heat shrink labels. Paper continues to dominate the industry – but films are enjoying good growth.
Broadband Connection a long way from 100%
OTX Digital Signage recently conducted an awareness survey. Results from the survey confirmed that only 54% of USA Households have a broadband connection. This was as of forth quarter of 2007.
Monday, January 28, 2008
2008 Printer Cost Increases
PIA/GATF reported on a recent survey based on interviews around the USA from
Printers. The following are forecasted increases-
Prepress Consumables / Plates 4%
Ink 4.5%
Paper 5.5%
Wages/Salaries 3%
Employee Health Benefits 8.5%
Property / Casualty Insurance 2.5%
Energy / Utilities 6%
Printers. The following are forecasted increases-
Prepress Consumables / Plates 4%
Ink 4.5%
Paper 5.5%
Wages/Salaries 3%
Employee Health Benefits 8.5%
Property / Casualty Insurance 2.5%
Energy / Utilities 6%
2007 Market Share per Printing Press Process (sales dollar)
All Types of Offset Lithography 42%
Gravure 15%
Flexography 21%
Letterpress 1%
Screen 2%
Hybrid Press 3%
On Press Digital 17%
Source: PrintCom Consulting
Gravure 15%
Flexography 21%
Letterpress 1%
Screen 2%
Hybrid Press 3%
On Press Digital 17%
Source: PrintCom Consulting
Hottest Potential markets for Printers in 2008
Publishing/non-newspaper 2008F Print Revenue-$15.4billion
Banking and Insurance 2008F Print Revenue-$13.4billion
Medical/Pharmaceuticals 2008F Print Revenue-$12.1billion
Packaging Goods 2008F Print Revenue-$11.3billion
Computer Software 2008F Print Revenue-$11.1billion
Real Estate 2008F Print Revenue-$11billion
Beverage 2008F Print Revenue-$8.8billion
Automotive 2008F Print Revenue-$8.8billion
Fashion 2008F Print Revenue-$8.7billion
Telecom 2008F Print Revenue-$8.7billion
Source Printing Impressions
Banking and Insurance 2008F Print Revenue-$13.4billion
Medical/Pharmaceuticals 2008F Print Revenue-$12.1billion
Packaging Goods 2008F Print Revenue-$11.3billion
Computer Software 2008F Print Revenue-$11.1billion
Real Estate 2008F Print Revenue-$11billion
Beverage 2008F Print Revenue-$8.8billion
Automotive 2008F Print Revenue-$8.8billion
Fashion 2008F Print Revenue-$8.7billion
Telecom 2008F Print Revenue-$8.7billion
Source Printing Impressions
Coated Groundwood Continues to see Strong Demand
The publication groundwood grades continue to witness tight conditions and large printers are reported to be scrambling for paper. Additionally, NewPage announced plans to shutter 317,000tons of capacity.
Prices for these grades rose $30-60/ton this month resulting in a total of $190/ton total increase from June 2007. Shipments rose nearly 3% for the year.
Prices for these grades rose $30-60/ton this month resulting in a total of $190/ton total increase from June 2007. Shipments rose nearly 3% for the year.
Friday, January 25, 2008
Harry Potter Author Refuses Non-FSC Paper
J.K. Rowling, author of the best-selling Harry Potter series, has blocked printing of the Finnish version of her final book because the paper has not received Forest Stewardship Council (FSC) certification. Rowling has insisted that the enviro-friendly paper be imported for production of “Harry Potter and the Deathly Hallows,” the seventh tome in the series.
Guess she should have come to Paper.com, the site has many FSC sources and grades to choose from.
Guess she should have come to Paper.com, the site has many FSC sources and grades to choose from.
Quebecor World Files for Protection
North America’s second largest printer, at one time one of the most respected printers, filed for creditor protection. This printer produced many of the major North American publishers and catalogues including Time and Parade magazines as well as catalogs for Victoria's Secret and Williams-Sonoma. The top vendors were owed over $20million.
Newsprint Continues to Plummet
Consumption of newsprint continues to decline with US Dailies falling by over 10% 2006 vs. 2007 (and nearly 20% December 06 vs. 07).
End user inventories also decreased 16,000 tons for newspaper publishers and mill operating rates fell to 94%. Further, exports from North American producers fell over 25% - most likely because of the weak dollar – but I’m sure lower demand was also at play.
Recall, Paper.com has reported that many North American paper mills over the past several years have shuttered equipment thus reducing supply. Good news for producers is the $60/ton increase for this quarter will most likely hold and the $25/ton announced last quarter did hold.
End user inventories also decreased 16,000 tons for newspaper publishers and mill operating rates fell to 94%. Further, exports from North American producers fell over 25% - most likely because of the weak dollar – but I’m sure lower demand was also at play.
Recall, Paper.com has reported that many North American paper mills over the past several years have shuttered equipment thus reducing supply. Good news for producers is the $60/ton increase for this quarter will most likely hold and the $25/ton announced last quarter did hold.
Wednesday, January 23, 2008
Because of Niches, Magazines Still Strong
January 20, 2008, Folio Magazine-
Newspaper publishers fret that younger readers go online for their news, but magazines continue to command loyal audiences, many of them young. "There are more magazines than ever before," said Samir Husni, a journalism professor at the University of Mississippi known as "Mr. Magazine" with a Web site dedicated to the subject. "There are more specialized magazines
today than there were in the mid-1960s." Husni said magazines have changed, most notably with the demise of "the 800-pound gorilla," he said, referring to general-interest magazine.
(For more information, please see)
http://www.foliomag.com/2008/because-niches-magazines-still-strong )
Newspaper publishers fret that younger readers go online for their news, but magazines continue to command loyal audiences, many of them young. "There are more magazines than ever before," said Samir Husni, a journalism professor at the University of Mississippi known as "Mr. Magazine" with a Web site dedicated to the subject. "There are more specialized magazines
today than there were in the mid-1960s." Husni said magazines have changed, most notably with the demise of "the 800-pound gorilla," he said, referring to general-interest magazine.
(For more information, please see)
http://www.foliomag.com/2008/because-niches-magazines-still-strong )
Tuesday, January 22, 2008
Boise starts up p-s papermaking machine
-- Converting Magazine, 1/21/2008
Boise Paper completes the startup phase Jan. 16 of its $80-million capital investment to expand production of pressure-sensitive papers.
The project adds new capability to the existing 250-in., #3 paper machine in Wallula, WA, with state-of-the-art equipment that increases p-s paper capacity by 200,000 tons. Proprietary technology provides Boise with the ability to produce C1S face stocks and release liners while continuing to produce a range of uncoated products, the company says.
“We’re now achieving our operating and quality targets for the production of coated label and release products while continuing to meet targets on existing uncoated free sheet products," says Alexander Toeldte, executive vice president, Paper, Packaging & Newsprint.
Boise Paper completes the startup phase Jan. 16 of its $80-million capital investment to expand production of pressure-sensitive papers.
The project adds new capability to the existing 250-in., #3 paper machine in Wallula, WA, with state-of-the-art equipment that increases p-s paper capacity by 200,000 tons. Proprietary technology provides Boise with the ability to produce C1S face stocks and release liners while continuing to produce a range of uncoated products, the company says.
“We’re now achieving our operating and quality targets for the production of coated label and release products while continuing to meet targets on existing uncoated free sheet products," says Alexander Toeldte, executive vice president, Paper, Packaging & Newsprint.
MPA: Mags Must Adapt Or Die
January 17, 2008, MediaDailyNews - Magazines are well-positioned to compete in today's media landscape, but must adapt quickly or face losing ground to new types of content publishers--be it the Internet or elsewhere.
That's according to John Griffin, the president of the National Geographic Group and the new chairman of the Magazine Publishers of America. Speaking at the University Club in New York, Griffin said one of the keys to success in the Internet era is more precise measurement of the
audience's size, characteristics, and engagement with specific magazines. This will help level the playing field with the Internet, where digital technology allows a variety of measurements seen as more precise by media planners. (For more information, please see
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=74492
)
That's according to John Griffin, the president of the National Geographic Group and the new chairman of the Magazine Publishers of America. Speaking at the University Club in New York, Griffin said one of the keys to success in the Internet era is more precise measurement of the
audience's size, characteristics, and engagement with specific magazines. This will help level the playing field with the Internet, where digital technology allows a variety of measurements seen as more precise by media planners. (For more information, please see
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=74492
)
Monday, January 21, 2008
Wal-Mart Cuts 1,000 Magazines From Its Stores
Wal-Mart, which has more than 4,000 U.S. stores, is cutting more than 1,000 magazines from the list of titles it will sell. Some of the country’s most popular titles are being axed, including The Economist, BusinessWeek, The New Yorker, Forbes and Fortune. Wal-Mart accounts for more than 15% of total U.S. magazine retail sales.
Prices up for Uncoated Office Papers
Domtar and International Paper have both just announced a $60/ton hike on a variety of uncoated free sheet products. International Paper has also announced $40/ton hike on bleached paperboard. Increases were also announced on Kraft paper and recycled boxboard.
Newsprint Finally sees a Positive
Newsprint inventories look to be falling and several buyers are scrambling for paper. We understand the $20 of $25 Fall price hike was finally paid in December, with publishers' finally agreeing to the paper producers’ earlier announcement. Note, North American Newsprint prices will continue to rising to meet European producer price levels -
roughly $200/mton above USA.
Trade reports suggest that producers may attempt for $60/ton increase for the first half of 2008. Finally, all the shuttered Newsprint capacity may just be paying off for the producers.
roughly $200/mton above USA.
Trade reports suggest that producers may attempt for $60/ton increase for the first half of 2008. Finally, all the shuttered Newsprint capacity may just be paying off for the producers.
The Economy
Some recent comments that outline forecasts for economy and that may serve to slow down the paper industry demand and pricing increases for 2008.
* The economy is at a slowing point with the potential for recession.
* The collapse of the subprime mortgage market not only will cause devaluation of home values, but also has negatively affected consumer spending.
* The team expects the Federal Reserve Board to cut interest rates several times to combat the mortgage issues. The rate cuts could affect inflation and cause the U.S. dollar, already at historic lows, to go lower.
* Energy prices will continue to be extremely volatile. A growing trend toward energy efficiency has not helped to lower energy prices as yet.
* A lively presidential election year with diverse and polarizing candidates may create political instability and hinder business and consumer spending.
* The economy is at a slowing point with the potential for recession.
* The collapse of the subprime mortgage market not only will cause devaluation of home values, but also has negatively affected consumer spending.
* The team expects the Federal Reserve Board to cut interest rates several times to combat the mortgage issues. The rate cuts could affect inflation and cause the U.S. dollar, already at historic lows, to go lower.
* Energy prices will continue to be extremely volatile. A growing trend toward energy efficiency has not helped to lower energy prices as yet.
* A lively presidential election year with diverse and polarizing candidates may create political instability and hinder business and consumer spending.
Federal Report: Manufacturers Face Rough Times Ahead
By Jeannine Aversa, (we include some bullet items from her presentation)
-Retailers, homebuilders and many manufacturers (such as paper) should brace for even more rough times ahead, a somber.
- Federal Reserve suggests amid growing fears that the U.S. might be sliding into recession.
-Fed's snapshot of business conditions showed a national economy losing momentum heading into the New Year.
- Labor Department reported that U.S. consumer prices rose in 2007 at the fastest pace in 17 years; by 4.1 percent, as motorists paid a lot more for gasoline and food.
-Many banks reported losses and said people were having trouble making payments for everything from credit cards to cars.
- Stocks were mostly down for 2008.
-Beginning of last year, many economists put the chance of a recession at less than 1-in-3; now an increasing number say 50-50.
-Retailers suffered their worst sales season in five years in 2007.
-Risky ''subprime'' mortgages continued to sock financial institution.
Federal Reserve Chairman Ben Bernanke pledged to aggressively cut a key interest rate.
-White House and the Democrat-controlled Congress are exploring ways — including the possibility of temporary tax rebates — to get money quickly into the hands of consumers and help stimulate spending.
-Nation's unemployment rate went from 4.7 percent in November to 5 percent in December.
- Consumer confidence fell in January to its lowest point in figures dating back to 2002.
-Retailers, homebuilders and many manufacturers (such as paper) should brace for even more rough times ahead, a somber.
- Federal Reserve suggests amid growing fears that the U.S. might be sliding into recession.
-Fed's snapshot of business conditions showed a national economy losing momentum heading into the New Year.
- Labor Department reported that U.S. consumer prices rose in 2007 at the fastest pace in 17 years; by 4.1 percent, as motorists paid a lot more for gasoline and food.
-Many banks reported losses and said people were having trouble making payments for everything from credit cards to cars.
- Stocks were mostly down for 2008.
-Beginning of last year, many economists put the chance of a recession at less than 1-in-3; now an increasing number say 50-50.
-Retailers suffered their worst sales season in five years in 2007.
-Risky ''subprime'' mortgages continued to sock financial institution.
Federal Reserve Chairman Ben Bernanke pledged to aggressively cut a key interest rate.
-White House and the Democrat-controlled Congress are exploring ways — including the possibility of temporary tax rebates — to get money quickly into the hands of consumers and help stimulate spending.
-Nation's unemployment rate went from 4.7 percent in November to 5 percent in December.
- Consumer confidence fell in January to its lowest point in figures dating back to 2002.
Pulp Market Review
Mark Wilde, and Brian McClay, publisher of Market Pulp Monthly held a presentation, which I attended, I include notes on presentation on this session of the Pulp Market.
-Pulp prices have been rising steady over the past decade to today’s highest prices in 10 years.
-December 2007 price
NBSK $880/MT includes Dec2008 increase - which met with no resistance
Southern Pine $840/MT
Northern Hardwood $790/MT
BEK $800/MT
-Inventory remains steady for year at 32 days
-Market Pulp demand for 2007 is $52million up 2.5% from 2006
-China continues to grow their demand for pulp
-Hardwood fiber supply down given mill closures and transfer of production
-Softwood demand flat
-Look for First quarter of 2008 to be slow
-USA recession
-Europe slow as well
-Continued cost pressure on pulp producers – energy, freight, and wood chips
-Watch for Finland labor agreement, contracts up in April – big pulp producer
-Pulp prices have been rising steady over the past decade to today’s highest prices in 10 years.
-December 2007 price
NBSK $880/MT includes Dec2008 increase - which met with no resistance
Southern Pine $840/MT
Northern Hardwood $790/MT
BEK $800/MT
-Inventory remains steady for year at 32 days
-Market Pulp demand for 2007 is $52million up 2.5% from 2006
-China continues to grow their demand for pulp
-Hardwood fiber supply down given mill closures and transfer of production
-Softwood demand flat
-Look for First quarter of 2008 to be slow
-USA recession
-Europe slow as well
-Continued cost pressure on pulp producers – energy, freight, and wood chips
-Watch for Finland labor agreement, contracts up in April – big pulp producer
Coated Publication Grades Stronger
The coated Groundwood publication market (paper used for magazines) remains somewhat tight, with buyers scrambling for volume. According many in industry, price on 40# LWC have increased $190/ton between June of 2007 and January of 2008. Many sources report that coated rolls remain especially tight. Shipment volumes rose 6.5% since last November. December shipments were also strong.
NewPage-Stora Integration Costs Jobs
In an effort to achieve $265 million in savings, NewPage announced several moves related to its integration with the former Stora Enso North America. Recall Paper.com reported on NewPage acquiring the North American mills of StoraEnso.
Four paper machines are being closed down permanently at facilities in Rumford, ME; Niagara, WI; and Kimberly, WI. Its Chillicothe, OH, converting mill will be shut down and its equipment relocated to a pair of plants. In all, 664 positions are being impacted.
Despite the reductions, NewPage expects to increase its North American production between 3 percent and 8 percent in 2008 compared to the combined production realized in 2007.
Four paper machines are being closed down permanently at facilities in Rumford, ME; Niagara, WI; and Kimberly, WI. Its Chillicothe, OH, converting mill will be shut down and its equipment relocated to a pair of plants. In all, 664 positions are being impacted.
Despite the reductions, NewPage expects to increase its North American production between 3 percent and 8 percent in 2008 compared to the combined production realized in 2007.
Quebecor World Hopes to Survive
Quebecor World appears to be close to bankruptcy.
This large North American printer has been attempting to iron out conditions of the $400 million rescue financing agreement reached with parent company Quebecor Inc. and Tricap Partners.
This large North American printer has been attempting to iron out conditions of the $400 million rescue financing agreement reached with parent company Quebecor Inc. and Tricap Partners.
Tuesday, January 08, 2008
Recycled paper fun Facts for 2007
-Well over 50% of all the papers that end up in consumers’ hands had some percent-recovered fiber.
-USA paper industry plants 5 new trees for every American, each year.
-USA forest has increased 39% since 1952
-A recycled fiber can only be used 5-10 times before it becomes too
weak to include in production of quality paper
-If 100% of paper production were made from 100% post consumer paper – the world would only be able to produce paper for 6 months
before running out of fiber.
-Note: some paper – books, tissue, and archived documented are seldom or never enter the recycle stream for fiber.
-USA has 873billion acres of land that are used solely for production of commercial products – only 2% are used to harvest trees each year.
-USA pulp and paper manufacturers plant two trees for every one
taken for production.
-Paper.com recently introduced a “Green” store filled with thousands of environmentally friendly papers.
-USA paper industry plants 5 new trees for every American, each year.
-USA forest has increased 39% since 1952
-A recycled fiber can only be used 5-10 times before it becomes too
weak to include in production of quality paper
-If 100% of paper production were made from 100% post consumer paper – the world would only be able to produce paper for 6 months
before running out of fiber.
-Note: some paper – books, tissue, and archived documented are seldom or never enter the recycle stream for fiber.
-USA has 873billion acres of land that are used solely for production of commercial products – only 2% are used to harvest trees each year.
-USA pulp and paper manufacturers plant two trees for every one
taken for production.
-Paper.com recently introduced a “Green” store filled with thousands of environmentally friendly papers.
Thursday, January 03, 2008
Total Printing/Writing Paper Shipments Up 0.9%
AF&PA reported on the Paper market-
Overall U.S. printing/writing paper shipments increased 0.9% in November compared to the prior-year period, according to the Pulp and Paper Products Council (PPPC). Year-to-date, total shipments declined –0.9%. Coated mechanical shipments were down –0.8% from the previous November, yet rose 5.2% year-over-year. Coated freesheet shipments fell –1.1% for the month and –3.7% year-to-date compared to the prior year. Uncoated freesheet shipments dropped –3.5% in November and –4.3% year-over-year.
Overall U.S. printing/writing paper shipments increased 0.9% in November compared to the prior-year period, according to the Pulp and Paper Products Council (PPPC). Year-to-date, total shipments declined –0.9%. Coated mechanical shipments were down –0.8% from the previous November, yet rose 5.2% year-over-year. Coated freesheet shipments fell –1.1% for the month and –3.7% year-to-date compared to the prior year. Uncoated freesheet shipments dropped –3.5% in November and –4.3% year-over-year.
Cenveo to Buy Rex Corporation
Cenveo Inc., a commercial printer and packaging manufacturer, has agreed to buy privately held Rex Corp. for an undisclosed cash value. The deal is expected to close in the first quarter. Jacksonville, Fl.-based Rex employs 170 and has annual revenue of $40 million.
Wausau Reports on Recent Survey for Bright Colored Papers
C&R Research just announced that nearly 75% of designers prefer Wausau’s Astrobright to other brands of bright colors. The survey confirmed that most popular colors are yellow and green, followed by blue, red, orange, pink, and purple.
Most bright colored stock is used for flyers, card stocks, covers, brochures and newsletters.
Paper.com sells the Astrobrights as well as the comparable products
Such as Bright Hue from Mohawk and Smart Brights.
Most bright colored stock is used for flyers, card stocks, covers, brochures and newsletters.
Paper.com sells the Astrobrights as well as the comparable products
Such as Bright Hue from Mohawk and Smart Brights.
Wausau Papers Introduces New Grades
Wausau recently announced the introduction of an expanded Astropaque Cover line with higher caliper and more bulk. This is the perfect grade for heavy duty applications and business cards. The grade is now available in smooth or high caliper in attention getting 98 brightness and is certified by Forest Steward Council (FSC).
The company also introduced Crinkles, a grade designed to appear like a handmade sheet for the crafters and Scrapbookers. This grade is suitable for laser printers, it is available in 10 earth colors, and is acid free / lignin free. Paper.com markets all the Wausau grades and most items ship same day.
The company also introduced Crinkles, a grade designed to appear like a handmade sheet for the crafters and Scrapbookers. This grade is suitable for laser printers, it is available in 10 earth colors, and is acid free / lignin free. Paper.com markets all the Wausau grades and most items ship same day.
Paper.com - one of the World’s Largest Paper Websites - Introduces Newly Designed Site
P. Scott Vallely, a paper industry executive; and John Engel, an expert in web design and internet marketing teamed up 5 years ago to form Paper.com. This profitable Internet company recently introduced a revised design for a completely new look. Paper.com has nearly 40,000 paper products – representing paper grades for markets such as the office from inkjet to laser to digital; writing, text and cover papers; exotic papers for the scrapbookers; thousands of printed and unprinted papers for schools, restaurants, hotels, and professional offices; personalized printing for invitations, announcements, and calling cards; specialty and imported papers for Artists; and, coated and uncoated papers for printers. The site is conveniently divided into 8 sections for easy shopping – Office, Stationery, Art, School, Seasonal, Theme, Scrapbooking and Environmentally Friendly papers. The website has nearly 50 vendor warehouses throughout the United States and ships within 24 hours after receipt of order – from a single sheet of paper to multi truckloads. The site now enjoys nearly 6000 unique visitors every day clicking onto www.paper.com
NewPage completes buyout of Stora Enso's North American Plants
The rumored M&A was previously reported by Paper.com, in December, the acquisition of StoraEnso’s North America facilities was completed.
Papermaker NewPage Corp. of Miamisburg, OH, completed its purchase December 21 of Stora Enso’s North American paper-manufacturing operations for $2.556 billion.
NewPage now operates 12 paper mills with 26 paper machines located in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 5.5 million tons of paper. NewPage is now the largest manufacturer of coated paper in North America, based on capacity.
Paper.com has all the NewPage grades in stock and ready for immediate shipment.
Papermaker NewPage Corp. of Miamisburg, OH, completed its purchase December 21 of Stora Enso’s North American paper-manufacturing operations for $2.556 billion.
NewPage now operates 12 paper mills with 26 paper machines located in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 5.5 million tons of paper. NewPage is now the largest manufacturer of coated paper in North America, based on capacity.
Paper.com has all the NewPage grades in stock and ready for immediate shipment.
Recycled Paper Fact
EPA just reported that one ton of recycled paper stock can save up to 4000 kilowatt hours and 17 mature trees. The Paper.com website introduced a ‘green’ store to support all the Environmentally Friendly papers.
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