Media Week Announces Top 10 magazines

The index annually recognizes consumer magazines with a recent track record of standout advertising revenue and page performance.
1The Economist
2Elle
3People
4Women’s Health
5EveryDay – Rachael Ray
6Real Simple
7Men’s Health
8Family Circle
9Vogue
10New York

Containerboard Demand Down

Economists at RISI Inc. forest products information service, have forecast as much as 1.8 million tons of containerboard papers are out of service this quarter. However, supply remains in excess because of the recent 40% plunge in U.S. linerboard export production, which has caused extra tonnage into the domestic marketplace.

Another Chicago Newspaper Files for Bankruptcy

Sun-Times Media Group , the parent of the Chicago Sun-Times and 59 other Chicago-area newspapers, after burning through cash at more than $5 million a month--filed for Chapter 11 bankruptcy protection. Recall, in December, we reported on Chicago Tribune parent Tribune Co. straining under nearly $13 billion in debt--filed for protection while it restructures.

Linerboard and Corrugated Medium Price Declines

Price declines for containerboard continue to increase.
Containerboard sales prices are in a steep decline and most buyers expect this trend will continue in April because box consumption has been reduced substantially.
Buyers report that linerboard spot sales prices averaged $540/ton this month, down $15 from the month before, while corrugated medium also has dropped $15 to $530. Early orders for April deliveries put these prices at $500-$510 before customer-specific discounts.
In fact, analyst George L. Staphos at Merrill Lynch & Co. says some April linerboard prices could be as low as $470-480/ton after volume discounts in the competitive Northeast region --and only slightly higher in the Midwest. He adds that corrugating medium transaction prices in the East Coast and Midwest may be heading for $440-$470 in coming weeks.

U.S. Paper, Paperboard Capacity Falls - First Word from “Paper Week”

Source: Manufacturing.Net
NEW YORK (AP) -- U.S. paper and paperboard capacity fell 0.8 percent last year as 41 manufacturing facilities were permanently closed, according to the American Forest & Paper Association.
The group, which put domestic capacity at 96.3 million tons, also said it expects total paper and paperboard capacity to decline 1.8 percent this year and then expand 0.3 percent in each of the subsequent two years.
In 2007, 38 manufacturing facilities were permanently closed, AF&PA said.
In addition to last year's permanent closures, additional facilities in 2008 were idled, meaning they could be restarted.
The survey's results underscore the continued shrinkage in the industry, a sector whose capacity has fallen 7.3 percent since 2000.
AF&PA President, Donna Harman, speaking at the start of the trade group's annual "Paper Week" meeting in New York, said the industry has been hit "with a double whammy," the housing market collapsing and credit markets drying up.

Publications Papers Down

So far, for the month of March, publication coated groundwood grades fell $40/ton to $880/ton. Many buyers report discounts of $60/ton. Consumption continues to be depressed - both magazine and catalogue demand are down. We understand shipments in February were down 36.5% vs. February 2008. Printers such as RRDonnelly and Quad have shuttered presses. Paper manufactures continue managing downtime to avoid more aggressive price deterioration. Veros/100,000tons NewPage/150,000tons; AbitibiBowater/14,000 tons.

Containerboard Declines

List prices for 42lbs linerboard and medium have been reported to have declined $15/ton so far in March - after decreasing $10/ton in February. February 2009 shipments fell 10.5% from February 2008.

Kruger Shuts Down Machine

The number 4 machine at Corner Brook Pulp and Paper has shutdown. Kruger made the announcement earlier this month citing economic recession. The number 4 machine is expected to be back in production on May 17th.

How to Buy Paper?

We are often asked about the most efficient means for procuring paper for commercial printing jobs. Basic purchasing routes remain, online, such as Paper.com; from your printer, along with printing and distribution; a paper broker – who negotiates on your behalf; or directly from the paper mill. Typically, the way one purchases paper depends on company size and volume of paper consumed. Buying paper directly from the mill is reserved for only the big consumers with massive volume. Smaller buyers are better buying from the printer, and the mid size buyers, from a paper broker. In any case, given today’s economy, do your diligence that the supplier is financially stable.
Important attributes on paper procurement include-
-Be sure you are correct in all the specifications, size, weight, finish, shade, and quality.
-Double confirm the quantity to be ordered, the press date, and required timing for paper to arrive. Typically, the supplier will allow a ‘last date of change’.
-Compare many ‘like’ papers and specify the exact paper grade to be used for your job – you may request a trial to print to confirm quality and printing
-Do not buy from a seconds house – price is economical – but generally, there is something wrong with the quality of the paper – might even be a little as the shade or brightness not consistent throughout the order.
-If you have a choice, confirm a source close to printer – shipping factors into the price of paper.
-Negotiate the best price – paper is a commodity AND review pricing often.
-Try not to sign a contract that might commit you long term
-Remember also, you can save money in many ways with paper, reduce basis weight, smaller finished piece, lower paper quality
-Lastly, do not assume environmentally friendly papers are more expensive.

Norske Takes additional Downtime at Saugbrugs Mill

Norske Skog announced that it will take downtime at its Saugbrugs mill in Norway at the end of this month. . The Saugbrugs mill has three paper machines producing 555,000 TPA supercalendered paper. The week long shutdown will remove 11.000 tons of paper from the market

Americans go Green

KMWorld recently produced an article on being environmentally ‘friendly’. They produced a few ‘fun facts’
>If USA office worker reduces paper consumption 10% this is equivalent of 540,000 tons per year.
>Average worker prints 10,000 pages and wastes 1410 pages
>Average wasted page is $0.06
>A company with 500 employees spends $42,000 on wasted printing each year
>Only 49% of workers admit to recycling at the office
>Every ton of recycled paper saves 3.3 cubic yards of landfill.

Update for Uncoated Free Papers

Demand continues to fall off for uncoated free sheets (business papers and offset) while prices decline $10-25/ton in February. The markets are becoming over supplied (coated producers are 'lifting' the coater and marketing uncoated paper) making the market for cutsize very competitive. Shipments from traditional uncoated mills fell nearly 20% for both January and again in February versus a year ago.
Some mills continue downtime
Domtar - Plymonth, NC 295,oootons
SMART - Hamilton, Ohio shutter 2 paper machines - 48,000tons
On the other hand, Portucel reports they will EXPAND USA sales once new 500,000TPA machine starts up this summer.

Pulp Markets Continue to Decline

The price and demand for pulp continued to decrease for the seventh straight month.
>NBSK list price fell $25 to $650 (down from high of $885/MTon - August 2008)
>Hardwood - NBHK down $30 to $565; SBHK now $560
>BEK list is $585/MTon
Note, Pulp today is traded at large discounts off above list prices. Recent report outlined
>NBSK under $500/MTon
>NBHL & SBHK @$400/MTon
>BEK @$400/MTon
Even with massive downtime, inventory was near record high of over 5Million tons in November.

Paper Industry Continues to Worsen

February yielded yet another poor month for the pulp and paper industry with ALL categories sharply down. Uncoated Free shipments were down nearly 20%; Coated Free fell almost 24%;coated mechanical publication declined 37%; and, uncoated groundwood 31%. Producers continue to show discipline by taking down time to match lower demand. Many now think permanent capacity closures will begin to take place. Meanwhile, Uncoated Freesheet prices fell $10-25/ton in February.

White Birch again Announces more Down Time

Last week, we announced White Birch taking capacity out of the market, and this week, management has reported on more....
White Birch Paper Company said it would take market related downtime at its Stadacona L.P. Division in Quebec, Canada. The shutdown will begin March 20 and continue through April 6, resulting in 30,000 metric tons of reduced newsprint production. White Birch has approximately 1.25 million tons of uncoated groundwood production capacity.

Coy Paper Marketing Stop Light for Window and In-Store Promotions

The Coy Paper Company LLC has joined forces with Crusader Paper to market the popular Stop Light grade they sell under the Block Out brand. The laminated grade has two premium outer coated gloss sheets and a middle ply which has a carbon dye – providing a 100% opaque paper. This makes the grade an ideal candidate when both sides are printed or for window printed promotions when ‘no show through’ is required. The product is produced out of Crusader’s modern plant and is stocked in both .008 and .011 mil. The product is an immediate success for grocery stores, fast food restaurants, and convenience shops. The Block Out grade is also marketed by Coy Paper for playing card stock.

India Still Growing in Paper Consumption

Although most of the world is currently witnessing a reduction in paper consumption, India is showing growth. The demand for this growing market, is posting 10% per capita growth in 2008. This yields per capita of 8.3kg for 2008 versus 7.5kg for 2007. Meanwhile, the production is estimated to grow 7-8% over the next decade.

Paper.com Expands Box Offerings

The popular Paper.com website has recently expanded its product offerings of packaging material.
This line compliments its nearly 40,000 printing and writing items. The site now markets approximately 2000 packaging items, but has over 10,000 items available which includes thousands of stock boxes and mailers, hundreds of sizes of mailing bags, mailing tubes, tapes, poly bags, and more!

AbitibiBowater Shutters more Production


AbitibiBowater Inc. announced plans to shut down its Thorold mill in Ontario for two weeks. Closure of the 454,000 ton/yr newsprint mill. The mill will close on March 14 and resume operations on March 31.

NewPage to Idle Rumford Mill

NewPage will temporarily shut down its mill in Rumford, Maine from March 22 to March 29, removing approximately 10,250 tons of coated paper production from the market. Rumford has three paper machines that produce 533,000 tons/yr of freesheet and mechanical grades.

Kraft Paper Prices Finally Start to Fall

Multiwall sack kraft pricing has remained relatively stable at about $850/ton, but pressure with declining sales has buyers forecasting a drop of $20-25/ton. Shipments of unbleached kraft paper dropped 32.5% in January to 90,000 tons following a 15.6% year over year decline in the fourth quarter of 2008, according to American Forest and Paper Association statistics. This isn’t just a North American phenomenon, as there are news service reports of price decreases this quarter for both bleached and unbleached sack kraft paper in major European markets.

Rodale Announces Best Life Magazine to Shut Down


Rodale will stop printing Best Life magazine after the May issue hits newsstands next month. The title launched in 2004 and carried a rate base of 500,000. According to FAS-FAX figures, total circulation was actually up 6.1% in 2008. Ad pages were up 6.6% last year according to the Publishers Information Bureau. In November, the magazine cut 111 jobs, or about 10% of its workforce.

American Express to Close Publication

American Express reported that it would cease publication of its 11 year old Travel and Leisure Golf magazine. The magazine's advertising pages were down over 30% last year. The circulation decreased from 625,000 to approximately 500,000.

McClatchy Reduces Workforce another 15%

The newspaper publisher, McClatchy, announced a reduction of their staff by 15% or 1600 jobs because of declining revenue and the deepening economic recession. The company will also reduce salaries across all operations.

USA Paper Earnings Companies Hit Hard in 2008

Full year 2008 earnings of 18 publicly traded U.S. paper and forest companies fell 39.8% to $1.8 billion, compared to the year earlier. Sales for the full year declined 6.6% to $75.5 billion, or $4.7 billion less than sales in 2007. The 18 companies are those that report on a near-calendar fiscal year. For the fourth quarter, 17 out of 23 companies reported lower earnings year-over-year and seven reported losses.

Smart Papers and Mohawk Papers Unite

Smart Papers announced the sale of its premium uncoated printing papers business and brands to Mohawk Fine Papers Inc., Cohoes, N.Y and that it has named Mohawk the exclusive marketer to traditional paper distributors worldwide for Smart's Kromekote, Knightkote Matte and Smart Digital premium coated papers.
Smart Papers said it will continue to sell its coated brands directly to strategic accounts worldwide, including specialty and technical converters, OEMs, label manufacturers, laminators, packaging printers, gift and box wrap printers and greeting card companies. Smart Papers will expand its primary focus on manufacturing, marketing and product development of Kromekote, Knightkote, SMART Digital and its private label brands.
The premium uncoated brands Mohawk acquired include: Pegasus, Carnival, Synergy, Passport, Genesis, Magna Carta, SMART Brights, Feltweave, Nekoosa Linen, Nekoosa 25% Cotton, Nekoosa Bond, Skytone, Solutions and Proterra.

Wausau Still Opening New Distribution Center

The opening of Wausau Paper new Midwest distribution hub continues to be part of a previously announced $6.6 million capital project that will consolidate converting capacity and streamline distribution. 

The new center will be fully operational in June within a 300,000 square foot warehouse. This center will be an addition to the Allentown, Pennsylvania east coast distribution center. Paper.com carries all the popular Wausau grades, available for immediate shipment.

Federal Reserve reports Weakness Across the USA

Not surprising that the Pulp and Paper Industry remains weak, with much capacity shuttered given poor market demand. I include quotes from recent beige book report by FED by region (very dismay reading!)
Minneapolis – The downturn continues…..
San Francisco – Economic activity slowed further…….
Chicago – The economy remains weak ….
Cleveland – The economy weakened, industry shipments down ……
Boston – The economy continued to slow …….
New York – Economic activity deteriorated..
Philadelphia – Business conditions are weak …..
Richmond – Economic activity declined further ……
Atlanta – Home sales continued to decline …..
St Louis – Manufacturing continued its decline …..
Kansas City – Economy continued to deteriorate.........
Dallas – Falling demand ……

Paper.com Green Store very Successful

Paper.com continues to be successful in marketing Environmentally Friendly papers. The site offer thousands of products from all the major producers. The extensive line of papers allows for end users to choose 100 percent post consumer, FSC papers, papers made from Carbon neutral credits, items made from alternative power such as wind to generate electricity, Papers made with process chlorine free (PCF) and elemental chlorine free (ECF) pulps and many that are Green Certified and contain the Green Seal. With all these choices, why go anywhere else but Paper.com? Shop Paper.com Green Store now!

Verso Mills Idle Machines

Verso Paper said it will temporarily shut down paper machines at its two Maine mills this month due to poor market conditions. The company will idle all four machines at its Bucksport mill for two weeks beginning March 9. Verso will also idle three of its four machines at its Androscoggin mill in Jay between March 6 and March 23 on a staggered schedule.

Release Liner and Labels in USA

The label market in USA witnessed a slight growth. World demand for labels were broken down into following markets – 50% Pressure Sensitive; 35% glue applied; 8% sleeving; and 2% in mold.
At 51% most of the release liner ended up in label stocks, 12.5% in tapes; 9.5% industrial; Hygiene 8% Graphic Arts 6%; Medical 3%; and envelopes 2%.

Kodak commited to digital print

The Wall Street Journal reported that Kodak was planning to divest its NexPress business; however, Kodak chairman and CEO Antonio Perez has stated the company has no plans to divest NexPress or Digimaster.

White Birch Mill Takes Down Time

The White Birch Paper Mill (North America’s #2 producer) announced it will take market related down time at its Bear Island Mill in Ashland, VA. The mill will shut down between March 8-30 for reduction of 15,000 tons.

Catalyst Cuts Production at Crofton, Elk Falls

Catalyst Paper said it would indefinitely curtail production at its Crofton kraft mill, and remove about 400,000 tons of annual pulp capacity. The company also announced a five-week curtailment at its Elk Falls mill. The Elk Falls mill’s PM 2 and PM 5 have been idle and were scheduled to resume production March 31, but will now remain closed. The indefinite curtailment on Elk Falls 3 paper machines will remove about 526,000 tons of newsprint and uncoated mechanical paper capacity on an annualized basis.

Market Pulp

Markets remain oversupplied and worldwide shipments declined 14.5% in January, NBSK inventory increased by 3 days to 43 days of supply and BEK increased by 4 days to 56 days of supply.

Quick Newsprint update

Market remains weak with domestic newsprint consumption declining
21.6% in January. The US dailies report down -22.6% January 2009 versus 2008 and exports are down 40%. Newsprint price decline accelerated in February, with list prices down $20/ton. In the prior three months, list prices
declined $10/ton/month