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%.
Monday, September 29, 2008
Pulp Market Continues to Slide
The pulp prices are declining and producer inventories are increasing and global demand is weak. Chinese demand, which had been strong, is now all but gone. Pulp prices for both list price and spot price have fallen by $50-70/Ton and October is not forecasted for any improvement. Producers will now reduce supply in an attempt to correct for market conditions. We think the winter will not be kind to the pulp industry (note, Canada and Finland are the two big players).
Catalyst to Take Downtime at Snowflake Mill
Catalyst paper announced that it is cutting production at its Snowflake mill in Arizona for eight days beginning Oct. 20. The downtime will remove approximately 8,000 tons of recycle newsprint from the market as well as reduce old newsprint (ONP) fiber requirements by about 10,000 tons.
Friday, September 26, 2008
USPS Mail Volume Declines Further
The U.S. Postal Service expects to end the current fiscal year with a volume decease of 9 billion pieces when its financial results are released in November. Postmaster General John Potter said that a reduction in work hours will be necessary to “share up business” as a result of the loss.
Coated Publication Groundwood Market Continues to be Soft
September pricing for groundwood coated grades remained flat, after increasing in both August and July. Mill and printer inventories have been rising and consumption falling. Producers are taking down time to maintain discipline in the market.
Also, we note in the Groundwood market - trade reports suggest a private equity buyer is close to acquiring Tembec's idled St. Francisville, LA mill (300K tpy of coated capacity).
Also, we note in the Groundwood market - trade reports suggest a private equity buyer is close to acquiring Tembec's idled St. Francisville, LA mill (300K tpy of coated capacity).
Newsprint Continues to Increase in Price
September prices for 30lb standard newsprint rose $15/ton to $750/ton, a 12
year high. This is the 2nd consecutive month that the full announced $20/ton
hike failed to take hold. Publishers report their inventories are rising
and a historical seasonal slowdown may yield more supply cuts to maintain pricing.
year high. This is the 2nd consecutive month that the full announced $20/ton
hike failed to take hold. Publishers report their inventories are rising
and a historical seasonal slowdown may yield more supply cuts to maintain pricing.
One Small Paper Mill does Well
The operators of Grays Harbor Paper in Washington State continue to do well because they now focus on niche business as a provider of 'green' paper products. The mill manufactures white, non-coated paper, basically the paper used in office copy machines. They are considered a national leader in sustainable manufacturing and green paper products. Grays Harbor Paper company now makes 9 percent of its paper entirely from “post-consumer materials” and 27 percent of its paper contains at least 30 percent recycled material. Grays Harbor Paper supplies all of the recycled paper sold at Staples office supply stores nationwide.
Thursday, September 25, 2008
Google Receives 71 Percent of All Searches
Paper.com continues to be one of the biggest internet marketing companies for paper products on the web. Most of the end users visit the site through Google.
Google accounted for 71.01 percent of all U.S. searches in the four weeks ending August 28, 2008, Hitwise announced today. Yahoo! Search, MSN Search and Ask.com each received 18.26, 5.32 and 3.45 percent respectively. The remaining 46 search engines in the Hitwise Search Engine Analysis Tool accounted for 1.95 percent of U.S. searches.
Google accounted for 71.01 percent of all U.S. searches in the four weeks ending August 28, 2008, Hitwise announced today. Yahoo! Search, MSN Search and Ask.com each received 18.26, 5.32 and 3.45 percent respectively. The remaining 46 search engines in the Hitwise Search Engine Analysis Tool accounted for 1.95 percent of U.S. searches.
Paper Recycling Remains High
In light of new revelations about the extent of global warming, consumers
are putting new pressure on companies to provide environmentally friendly
products and services. And while the shift to becoming a "green" business
is time-consuming and potentially costly, there are many advantages to
reap.
Meanwhile, consumers are doing there part. American Forest and Paper Association (AF&PA) reported that 56% of the paper consumed in America was recovered for recycling in 2007. This statistic is ahead of schedule - and therefore AFPA set a new goal of 60% recovery by 2012.
The 54.3million tons of paper recovered in 2007 equates to 360 pounds for every American.
Websites such as Paper.com market recycled papers. The thousands of Green Papers stocked for immediate shipment range from 30 to 100% produced from recycled fibers.
Meanwhile, consumers are doing there part. American Forest and Paper Association (AF&PA) reported that 56% of the paper consumed in America was recovered for recycling in 2007. This statistic is ahead of schedule - and therefore AFPA set a new goal of 60% recovery by 2012.
The 54.3million tons of paper recovered in 2007 equates to 360 pounds for every American.
Websites such as Paper.com market recycled papers. The thousands of Green Papers stocked for immediate shipment range from 30 to 100% produced from recycled fibers.
Thursday, September 18, 2008
Quebecor World Creditors Seek Lawsuit
From Printing Impressions Magazine
MONTREAL—Some creditors of bankruptcy-protected Quebecor World have asked the court for permission to file suit against the printer, seeking $376 million they claim was paid to 14 private lenders prior to bankruptcy to buy back its debt.
According to a Bloomberg report, creditors asked Judge James Peck for permission to sue, contending Quebecor World paid the amount to Barclays Bank, Deutsche Bank and other parties that redeemed notes for the company on October 29, 2007, less than 90 days before the bankruptcy filing. Bloomberg quoted the creditors as saying the payments were made on account of antecedent debt owed by Quebecor World in private notes and exceeded what the parties would have received under a liquidation.
MONTREAL—Some creditors of bankruptcy-protected Quebecor World have asked the court for permission to file suit against the printer, seeking $376 million they claim was paid to 14 private lenders prior to bankruptcy to buy back its debt.
According to a Bloomberg report, creditors asked Judge James Peck for permission to sue, contending Quebecor World paid the amount to Barclays Bank, Deutsche Bank and other parties that redeemed notes for the company on October 29, 2007, less than 90 days before the bankruptcy filing. Bloomberg quoted the creditors as saying the payments were made on account of antecedent debt owed by Quebecor World in private notes and exceeded what the parties would have received under a liquidation.
Magazine Ad Spending Down 1.4%
The Nielsen Company’s Monitor-Plus services report released today showed that advertising spending decreased 1.4% for the first half of 2008 compared to the same period last year. Advertising spending for business to business magazines fell 8% and spending for national magazines were down 3.1%. Nielson’s figures vary slightly from the Publishers Information Bureau’s, which showed a 2.8% drop in ad revenue for the same period.
Fun Facts on Recycling
Americans create 4.5 pounds of waste each day between work and home. This means by the time you are 70, 50 tons of trash has been created. The good news is now, 30% is recycled - the rest goes to landfill. It is estimated, that by the time you are 70, you will have recycled 8,100 pounds of Newspapers, books, and magazines. Note: first curb side collection of newspapers started in Missouri in 1974.
Tuesday, September 16, 2008
US paper mills struggle with sour economy, cheap imports and rise of digital communication
Notes from article By Dinesh Ramde, Associated Press Writer
It's a scene that has played out in small paper towns from California to Maine. The number of jobs in the domestic paper industry has shrunk about 20 percent in recent years as costs rise and imports become cheaper. Demand all around has been dampened by the slow economy as well as the shift of eyeballs away from the printed page toward the screens of PCs and cell phones.
The state of Wisconsin still has more jobs in the paper industry than any other state, mainly because of its proximity to vast rivers that supply millions of gallons of water for the treatment of wood pulp. The state had about 35,500 paper-industry jobs in 2007, down 26 percent from the 48,000 jobs it had six years earlier. Nationwide about 117,000 jobs have vanished in that span, according to data from the U.S. Bureau of Labor Statistics.
After Wisconsin, the next largest paper employers are California and Pennsylvania with about 28,000 jobs each in 2007, followed by Illinois and Ohio with about 24,000 each. Each figure represents a decline of about 20 percent from 2001.
It's a scene that has played out in small paper towns from California to Maine. The number of jobs in the domestic paper industry has shrunk about 20 percent in recent years as costs rise and imports become cheaper. Demand all around has been dampened by the slow economy as well as the shift of eyeballs away from the printed page toward the screens of PCs and cell phones.
The state of Wisconsin still has more jobs in the paper industry than any other state, mainly because of its proximity to vast rivers that supply millions of gallons of water for the treatment of wood pulp. The state had about 35,500 paper-industry jobs in 2007, down 26 percent from the 48,000 jobs it had six years earlier. Nationwide about 117,000 jobs have vanished in that span, according to data from the U.S. Bureau of Labor Statistics.
After Wisconsin, the next largest paper employers are California and Pennsylvania with about 28,000 jobs each in 2007, followed by Illinois and Ohio with about 24,000 each. Each figure represents a decline of about 20 percent from 2001.
Thursday, September 11, 2008
Magazine Ad Pages Down
The consumer magazine business is a disaster!
Total magazine ad pages measured by the Publishers Information Bureau are down 9.2% through August, compared to the same period last year. Virtually all the major publishers are feeling the pinch. Of 37 big publishing groups measured by TNS Media Intelligence, 32 or 86% have seen ad pages fall. For the 32 publishers that are experiencing declines, the average decline was 14% for the year-to-date.
Total magazine ad pages measured by the Publishers Information Bureau are down 9.2% through August, compared to the same period last year. Virtually all the major publishers are feeling the pinch. Of 37 big publishing groups measured by TNS Media Intelligence, 32 or 86% have seen ad pages fall. For the 32 publishers that are experiencing declines, the average decline was 14% for the year-to-date.
Wednesday, September 10, 2008
UPM continues restructuring measures
UPM continues actions to secure its profitability in a business environment of slow growth and rising costs. UPM plans to close its least competitive paper and pulp capacity in Finland as well as to streamline operations in all business groups.
The planned actions to close capacity would improve UPM's cost competitiveness
The planned actions to close capacity would improve UPM's cost competitiveness
Verso Paper Machine at Bucksport to Lightweight Paper
Verso Paper Corp.
announced that it will begin transitioning the No. 1 paper machine at its Bucksport Mill, in Maine, to manufacture specialty papers starting on September 22. With this move Verso will begin supplying value-added specialty papers to customers, which leverage Verso's core coating and
lightweight paper production techniques. Once fully transitioned, this change will reduce Verso's coated groundwood production capacity by 84,000 tons per year.
announced that it will begin transitioning the No. 1 paper machine at its Bucksport Mill, in Maine, to manufacture specialty papers starting on September 22. With this move Verso will begin supplying value-added specialty papers to customers, which leverage Verso's core coating and
lightweight paper production techniques. Once fully transitioned, this change will reduce Verso's coated groundwood production capacity by 84,000 tons per year.
Tuesday, September 09, 2008
Hewlett Packard Announces Green Policy
Hewlett Packard announced a new policy for vendors that supply the more than 300,000 tons of paper HP purchases for retail. The suppliers must now market only certified papers with recycle content.
United States Postal Service talks about Environmentally Friendly Initiatives
The USPS recently issued a promotional brochure, Environmailism, which offers helpful insight to producing environmentally friendly direct mail pieces.
-Ask for the highest recycled content available for the grade of paper you are interested in
-Many grades are available from 30 all the way to 100% recycled, or even tree free.
-Print on lightest paper possible
-Ask for papers made of alternative fiber – tree free, cotton, etc vs. trees
-Design piece smaller to use less paper
-Seek inks that are not petroleum based – such as Soy based
-Opt for less ink coverage on printed promotion
-Print on both sides and use less paper
-Reduce run to exact match of material you need – watch for waste
-Be sure size of promotion matches paper sheet size and press size
-Merge and purge mailing list – remove invalid names
-Provide for opportunity for customer to opt out
-Maintain ‘do not mail’ list
Remember, you can always visit or call the paper expert at Paper.com for suggestions of paper from their new Green Store
-Ask for the highest recycled content available for the grade of paper you are interested in
-Many grades are available from 30 all the way to 100% recycled, or even tree free.
-Print on lightest paper possible
-Ask for papers made of alternative fiber – tree free, cotton, etc vs. trees
-Design piece smaller to use less paper
-Seek inks that are not petroleum based – such as Soy based
-Opt for less ink coverage on printed promotion
-Print on both sides and use less paper
-Reduce run to exact match of material you need – watch for waste
-Be sure size of promotion matches paper sheet size and press size
-Merge and purge mailing list – remove invalid names
-Provide for opportunity for customer to opt out
-Maintain ‘do not mail’ list
Remember, you can always visit or call the paper expert at Paper.com for suggestions of paper from their new Green Store
Pulp Market Update
Notes from session with Mark Wilde of Deutsche Bank and Brian McClay of TerraChioce
-Pulp buying and thus demand lowered considerably in last several weeks, especially in China, and as market pulp output and producers’ stockpiles continued to rise, particularly for hardwood grades.
-Pulp demand was also considerably lower in most other world markets rejecting increased paper mill market-related downtime
-Global pulp demand will continue to be weaker than normal through year-end, well below pulp supply, as papermakers in virtually all regions curtail production on a temporary basis to better match supply with slowing demand, and as more permanent paper mill closures in the US and Europe take effect.
- Pulp prices will continue to fall until enough capacity is removed to re-establish market balance early in 2009 for softwood and later next year for hardwood grades.
- Another 1.6 million tons of capacity to come on stream around the world in 2009 followed by more than 2 million tons each in 2010 and 2011, virtually all of it hardwood
-These declining price levels should trigger significant closures in North America, particularly in Canada, perhaps approaching 2 million tons over the next 6-9 months,
with most of that softwood pulp. Possibly 2 million tons taken out of European pulp production as well. High cost facilities will be first to go.
- A slowing economy combined with permanent market share losses to online and other lower-cost alternative media pushed US print activity to a 21-year low in North America
--Non-national metro dailies, will start going out of the print business altogether.
-Pulp buying and thus demand lowered considerably in last several weeks, especially in China, and as market pulp output and producers’ stockpiles continued to rise, particularly for hardwood grades.
-Pulp demand was also considerably lower in most other world markets rejecting increased paper mill market-related downtime
-Global pulp demand will continue to be weaker than normal through year-end, well below pulp supply, as papermakers in virtually all regions curtail production on a temporary basis to better match supply with slowing demand, and as more permanent paper mill closures in the US and Europe take effect.
- Pulp prices will continue to fall until enough capacity is removed to re-establish market balance early in 2009 for softwood and later next year for hardwood grades.
- Another 1.6 million tons of capacity to come on stream around the world in 2009 followed by more than 2 million tons each in 2010 and 2011, virtually all of it hardwood
-These declining price levels should trigger significant closures in North America, particularly in Canada, perhaps approaching 2 million tons over the next 6-9 months,
with most of that softwood pulp. Possibly 2 million tons taken out of European pulp production as well. High cost facilities will be first to go.
- A slowing economy combined with permanent market share losses to online and other lower-cost alternative media pushed US print activity to a 21-year low in North America
--Non-national metro dailies, will start going out of the print business altogether.
Capital Spending by Paper Industry expected to Drop
Lack of demand and pressure on profitability has forced paper companies to limited spending on capital expenses. Most mills will only spend on projects which reduce energy consumption, restructure equipment to product more value added grades, or modify equipment to manufacture a different product mix
Monday, September 08, 2008
Deluxe to Close Three Plants, Cut 570 Jobs
Deluxe Corp., a printer of bank checks, is closing three manufacturing facilities and a call center, resulting in the loss of 570 jobs. The company said it will close its North Wales, PA manufacturing plant and its Thorofare, N.J. manufacturing plant and call center in the first quarter of 2009. The Greensboro, NC manufacturing plant will be shuttered by the end of next year.
Print Catalogs Remain Primary Sales Channel
A survey conducted by the Direct Marketing Association revealed that the print catalog remains the largest revenue generator amongst all channels, accounting for nearly 50% of total sales in both 2007 and 2008. Results of the 106 multichannel merchants polled showed that 62% consider catalogs their primary sales channel. Only 20% of those polled cited the Web as their primary channel and just 6% said retail was. Of those respondents surveyed, 59% indicated that they have increased circulation, while 15% reported no change. Additionally, 44% of the merchants reported increasing page counts and 42% reported no changes at all in pages.
New York Times Saves on Paper
New York Times just announced it will begin to combine sections of the paper to save on costs. As an example, the paper's metro section will become part of the paper's A section - which is National and International. The sports section will be combined with the business section, during the week days. These combined sections will start in early October. Like so many newspapers, the New York Times finances have worsened and they must reduce costs in various ways, including reduce page sizes and number of pages, as well as shrinking their staff.
The paper will save several million dollars with this recent move.
The paper will save several million dollars with this recent move.
Friday, September 05, 2008
Wausau Papers Modifies Ice Line
The Exact Ice paper line has added a 100pound cover and is now available in 7 text and cover weights, including 50, 60, 70, 80 and 65, 80, and now 100 pound cover.
Paper.com will be marketing this grade once inventory levels are satisfied.
Paper.com will be marketing this grade once inventory levels are satisfied.
Many Newspapers Reduce Paper Consumption
In an effort to survive and save money, newspapers are now transitioning their paper from the standard 30pound (48.8gsm). As many as 70% of the newspapers are now ordering 45gsm. Large publisher, Gannett confirmed it saved $7.5million by reducing basis weight and they are now evaluating 42.5gsm. Many forecast that within 24 months, everyone will consume 45gsm and this will now be the standard.
Hazen Paper Purchases old Neenah Mill
Hazen Paper of Springfield, MA reached an agreement to purchase the Housatonic, MA plant from Neenah (this mil was acquired by Neenah as part of the Fox River purchase). Hazen specializes in film and foil laminations, gravure printing, embossing, and coating as well as security tickets, tags, and labels. No mention of status on the one paper machine at location.
Unisource Implements Fuel Surcharge
Paper, packaging and facilities supplies distributor Unisource Worldwide will institute a fuel surcharge due to the rising cost of diesel fuel. The company had been able to offset the fuel increase by maximizing delivery routing and truck fleet utilization.
Unisource will now institute a fuel surcharge per line item to all orders shipped from its warehouses and orders received through Unisource’s Website will receive a flat surcharge per order.
With gas prices increasing costs to every vendor that delivers, Paper.com firmly believes that paper sales on the internet will grow at an even faster pace. The site has over 40,000 items and ships the majority of orders within 24 hours.
Unisource will now institute a fuel surcharge per line item to all orders shipped from its warehouses and orders received through Unisource’s Website will receive a flat surcharge per order.
With gas prices increasing costs to every vendor that delivers, Paper.com firmly believes that paper sales on the internet will grow at an even faster pace. The site has over 40,000 items and ships the majority of orders within 24 hours.
SMART Papers' Super-Luxury Kromekote Brand Achieves Important Environmental Milestone - Full FSC Certification
SMART Papers' premium cast-coated Kromekote is now fully Forest Stewardship Council (FSC) certified, giving corporations and graphics professionals immediate access to the most luxurious and environmentally responsible printing and packaging papers in the world.
Kromekote is the first triple cast-coated brand to achieve full FSC certification. The achievement represents another important advance for SMART Papers and its commitment to supply the widest range of FSC premium coated and uncoated printing and packaging papers in North America.
SMART Papers is North America's largest independent manufacturer and marketer of premium coated and uncoated printing papers. The company is currently building a new energy facility at its manufacturing center that will be fossil fuel free by late 2009, enabling all of the company's papers to be fully carbon neutral. "SMART Papers' carbon-neutral future will give customers total confidence they are getting the most environmentally responsible printing papers available from any U.S. paper manufacturer," said SMART Papers President Dan Maheu.
Ultra-glossy Kromekote is widely regarded by printers and designers as the "gold standard" in printing papers. Now, the brand sets a new "green standard" for premium environmentally preferable coated papers, with both FSC certification as well as papers with 30% post-consumer waste (PCW) fibers.
SMART Papers recently announced FSC-certification for its Kromekote Recycled products. Today's announcement expands the certification to encompass the rest of the brand including Kromekote Text and Cover, Folding Board, Colors and Metallics, Foils, Textures and Digital products.
SOURCE: SMART Papers
Kromekote is the first triple cast-coated brand to achieve full FSC certification. The achievement represents another important advance for SMART Papers and its commitment to supply the widest range of FSC premium coated and uncoated printing and packaging papers in North America.
SMART Papers is North America's largest independent manufacturer and marketer of premium coated and uncoated printing papers. The company is currently building a new energy facility at its manufacturing center that will be fossil fuel free by late 2009, enabling all of the company's papers to be fully carbon neutral. "SMART Papers' carbon-neutral future will give customers total confidence they are getting the most environmentally responsible printing papers available from any U.S. paper manufacturer," said SMART Papers President Dan Maheu.
Ultra-glossy Kromekote is widely regarded by printers and designers as the "gold standard" in printing papers. Now, the brand sets a new "green standard" for premium environmentally preferable coated papers, with both FSC certification as well as papers with 30% post-consumer waste (PCW) fibers.
SMART Papers recently announced FSC-certification for its Kromekote Recycled products. Today's announcement expands the certification to encompass the rest of the brand including Kromekote Text and Cover, Folding Board, Colors and Metallics, Foils, Textures and Digital products.
SOURCE: SMART Papers
Thursday, September 04, 2008
Printer Survey on Environmental Programs
The Printing Impressions Magazine just published a survey with results of many questions for environmental programs that printers are interested in. Of particular note,
we outline, in order of popularity, which environmentally friendly steps USA the printers actually implemented –
Purchasing paper containing post consumer (waste paper)
Purchasing FSC paper
Using environmentally friendly inks
Developing internal recycling programs
Recycling solvents
Purchasing more energy efficient equipment
Planting trees
Direct-to-press processless plates
we outline, in order of popularity, which environmentally friendly steps USA the printers actually implemented –
Purchasing paper containing post consumer (waste paper)
Purchasing FSC paper
Using environmentally friendly inks
Developing internal recycling programs
Recycling solvents
Purchasing more energy efficient equipment
Planting trees
Direct-to-press processless plates
Digital Printing Still Growing
Overall print sales for 2008 are expected to grow over 2%, with both toner based and inkjet leading the way. PIA/GATF released the following growth projections
-Overall growth. ..............2.2%
-Ink Based Printing ……...0.8%
-Toner/Digital Printing .….6.2%
-InkJet ……….....……………..6.0%
Most printers, although frustrated with increased paper prices, are generally optimistic about 2008 sales.
-Overall growth. ..............2.2%
-Ink Based Printing ……...0.8%
-Toner/Digital Printing .….6.2%
-InkJet ……….....……………..6.0%
Most printers, although frustrated with increased paper prices, are generally optimistic about 2008 sales.
Market Pulp Demand is Questioned
Although worldwide market pulp shipments for 2007 represented its sixth consecutive month of growth (40.4million tons), balance of 2008 may witness a steady or slight decline in demand. North American pulp mills shuttered 2.4million tons since 2005, and Pope and Talbot recently announced bankruptcy and will curtail 3 mills as well as Catalyst will close 200,000 facility.
NBSK, the benchmark grade, saw little change in price since the first half of 2008, with list price staying at $880/ton. Because many more paper making plants will continue to close due to poor economics and declining demand, this will result in less demand demand for pulp.
Top market pulp producers for North America include
Weyerhaeuser 2Million tons 9.7% market Share
Domtar 1.5million tons 7.5% market share
Canfor 1.4million tons 7.1% market share
Tembec 1.3million tons 6.3% market share
Georgia Pacific 1.2million tons 5.8% market share
NBSK, the benchmark grade, saw little change in price since the first half of 2008, with list price staying at $880/ton. Because many more paper making plants will continue to close due to poor economics and declining demand, this will result in less demand demand for pulp.
Top market pulp producers for North America include
Weyerhaeuser 2Million tons 9.7% market Share
Domtar 1.5million tons 7.5% market share
Canfor 1.4million tons 7.1% market share
Tembec 1.3million tons 6.3% market share
Georgia Pacific 1.2million tons 5.8% market share
Quebecor World begins Consolidation
Cash starved Quebecor World has announced it will consolidate divisions to become more efficient. It will integrate six divisions into three business units. The magazine, book, and directory divisions will become the Publishing Services Group. The US Retail, catalogue, Sunday magazine and direct mail will be combined to form Marketing Solutions. The Logistics and premedia groups will also combine.
The company also announced the sale of its European operations to Hombergh/De Pundert Group (HHBV) of the Netherlands.
The company also announced the sale of its European operations to Hombergh/De Pundert Group (HHBV) of the Netherlands.
Tag and Label Markets Continue to Grow
Times are tough for most paper markets, but the Tag and Label markets seem to be enjoying steady growth. Although these converters also share in the challenges of rising raw material costs, fierce competition, and a poor economy, but overall global growth has been steady at 4-4.5%. It is estimated that BRIC countries – Brazil, Russia, India, and China – will witness robust growth in future. The USA market is forecast to grow 5% annually, and reach $18billion by 2011. The pressure sensitive labels continue to account for the majority of this growth.
Top Label and Tag converters include
RR Donnelly
Avery Dennison
CCL Industries
Fort Dearborn
WS Packaging
Multi Color
Spear
Nashua Corporation
Standard Register
Hammer Packaging
Top Label and Tag converters include
RR Donnelly
Avery Dennison
CCL Industries
Fort Dearborn
WS Packaging
Multi Color
Spear
Nashua Corporation
Standard Register
Hammer Packaging
Wednesday, September 03, 2008
Another Major Coated Freesheet Maker Raises Prices
Verso Paper has announced an increase of $60 per ton for its Influence and Velocity coated freehseet paper grades, effective October 1.
Paper.com announced that NewPage did the same last week for nine of its brands.
Smart Papers Goes ahead with Co-Generation
As we previously reported, it is now confirmed that Smart Papers will build a 40MW co-generation system to produce both steam and electricity to operate the mill. This project will establish the site to be a zero process waste discharge facility and now generate carbon credits.
Paper.com markets the mill's premium cast coated, matte coated , as well as the uncoated text, cover, and writing grades. Many of these grades are Forest Stewardship Council (FSC) certified.
Paper.com markets the mill's premium cast coated, matte coated , as well as the uncoated text, cover, and writing grades. Many of these grades are Forest Stewardship Council (FSC) certified.
Magazine Industry Troubled
So far, 2008 has not been good to the magazine industry with an increase in postage, fuel, printing, ink, and paper costs. This, coupled with a recessionary economy. The hope is the recent olympics and a presidential campaign will assist a boost in readership. So far, pages and revenue as well as circulation are off significantly. To date, only 41 new magazines were launched (compared to 50 in 2007 and 72 in 2006).
This effects the paper industry in that consumption is also now down for publication coated grades.
This effects the paper industry in that consumption is also now down for publication coated grades.
American Eagle Mill continues to Grow
The American Eagle mill of Tyrone, PA, continues to enjoy sales growth. The mill is operated by a group of employees that purchased the closed facility from Westvacao in 2001. The plant now employs 265 workers and produces 90,000TPA of printing and converting grades. The product line includes 100% recycled, 50- 80pound, as well as 30% recycled reply card as well as envelope grades on two paper machines. The mill can produce 50-120pound uncoated grades.
Ordering Paper online Grows
International Paper's xpedx merchant division posted $1.4billion in ecommerce sales in 2007, for a 12% increase from 2006. Xpedx confirmed 5.8 million orders were conducted, or about half of the total xpedx sales.
Paper.com, with 40,000 items and nearly 60 distribution centers also outlined aggressive growth for 2007. Industry experts forecast this tend to continue.
Paper.com, with 40,000 items and nearly 60 distribution centers also outlined aggressive growth for 2007. Industry experts forecast this tend to continue.
Acacruz Plans Pulp Capacity Expansion in Brazil
Acacruz Celulose announced plans to build a pulp mill in Brazil. Management stated the completed facility will produce 1.4million tons of hardwood market pulp. The plant will be operational by 2015. Once complete, Aracruz will supply 25% of the world's market hardwood pulp, or, about 7 million tons per year.
Soporcel Installs new Cutsize Sheeter
Portuguese pulp and paper manufacturer, Soporcel, ordered two cut size converting and packaging lines from ECH Will and Pemco for the new paper mill under construction. The new equipment will produce 500,000TPA.
The Soporcel sheet is a worry-free copy paper that is one of the brightest on the market. Paper.com markets this sheet at approximately the same price as the lower brightness grades.
The Soporcel sheet is a worry-free copy paper that is one of the brightest on the market. Paper.com markets this sheet at approximately the same price as the lower brightness grades.
Climax Paper Plant Purchased
As previously announced, the purchase was completed for the Climax Paper facility in Loweville, NY last month for $6.9million. The mill produced heavy weight cover and converting grades on a cylinder paper machine.
MeadWestcavo Completes Sale of Specialty Papers Cedar Mill
MeadWestvaco Corporation announced it has completed the sale of its Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper, Inc. (PSPI) on September 1, 2008. Terms of the agreement were not disclosed.
Tuesday, September 02, 2008
Kruger to Take Additional Downtime
Kruger announced it would take two more weeks of downtime on its 263,000 tons per year PM 4 at the Wayagamack mill starting September 1. The plans will remove approximately 10,000 tons of coated mechanical paper from the market.
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