Price Increases are Announced for Europe

Due to increased costs, particularly for pulp, Norske Skog, Myllykoski, Arctic Paper and Lecta have announced coated paper increases. Effective with orders placed on or after April 1; Norske Skog will increase coated mechanical and supercalendered paper prices by Euro 35/MT and Myllykoski will raise the price of its publication papers by Euro 40/MT. Arctic and Lecta have announced increases of 10-12% for woodfree papers.
Surely, these increases will also effect USA purchases.

Newprint Prices to Increase

AbitibiBowater is the first to announce more price increases for Newsprint. The company has scheduled two newsprint price increases, for $25/MT each, for May 1 and June 1. The company had previously hiked prices twice this year, bringing the total scheduled for the first half of 2010 to an increase of $100/MT.
This additional cost is bad for the struggling newspapers, but the paper producers need it for survival!

RISI Reports on State of Paper Industry

RISI reported the following on the Graphic Paper Outlook
John Maine, RISI’s VP of World Graphic Papers, said that although the USA leading economic indicators are the strongest in 5 years, “in paper, it doesn’t feel that way”. In 2009, world demand for printing/writing paper dropped 10% overall, with the biggest decline seen in coated papers, which fell 13-15%. He predicted that Printing and Writing paper would be flat in 2010, with uncoated freesheet stable and coated paper the strongest to come back, noting that Jan-Feb 2010 saw coated paper shipments up 6%. Both magazine advertising spending and catalog circulation are expected to drop 3% in 2010, a great improvement over the double-digit declines of 2009, but still a reduction. Through 2011, he sees the world market facing overcapacity, especially in coated freesheet, due to the more than 4Million tons of new Coated Free capacity coming online in China.

Pulp Prices continue to Rally

Coy Paper's current News on the pulp and paper Industry continues to report on the tightening of the world pulp supply and that global prices have soared. We firmly predict that North American pulp prices are heading toward 15-year highs. Accordingly, paper and packaging materials will also increase.
Our past releases have included supply disruptions in Chile and Finland, two large producing countries supplying almost 12% of the world's annual pulp demands, coincided with a recovery in demand in China. Pulp is the raw material used to manufacture newsprint, fine paper, magazine paper and cardboard.
The two week strike at the Finnish ports resulted in plant shut downs in Finland and much of Chile's 4Million tons of annual market pulp is out of production due to the earthquake and tsunamis.
The March transaction price for Northern bleached softwood kraft of $890/MT is just under list of $910, past the 2008 cyclical high of $880 and heading toward the $925 transaction peak in the fourth quarter of 1995. Northern bleached hardwood kraft, at $785/MT spot this month, compares with $820 list and still has a way to go to reach the $865 peak in late 1995.

News from AF&PA Meetings

The American Forest & Paper Association is currently conducting their annual meeting in NYC and reported that USA paper and paperboard capacity dropped 2.5% in 2009 to 93.9 million tons, with 2010 capacity expected to decline 3.4% followed by stability in 2011 and 2012. In 2009, 14 US mills were permanently closed, shutting down 16 paper and paperboard machines, with an additional 11 machines permanently closed at other mills. Other machines and mills have been indefinitely idled and may be restarted in the future. AF&PA represents 90% of USA industry capacity.

Forecast is Growth in Demand for PaperBoard

According to market research firm Freedonia Group in a study titled “Corrugated & Paperboard Boxes,” demand for corrugated and paperboard boxes is projected to increase 2.4% annually through 2014 to $36.4 billion. Gains will be driven by an expansion in manufacturing output after the real declines registered during the 2004-2009 period. In particular, an acceleration in shipments of nondurable goods, such as food and beverages, will support demand for related boxes.
The study reported that sales of corrugated and solid fiber boxes accounted for more than 70% of demand in 2009, and advances will be aided by their well-entrenched position as the shipping container of choice in nearly all manufacturing sectors. Demand will also benefit from the favorable environmental profile of corrugated boxes, which will become increasingly important as producers continue to seek ways to adopt sustainable packaging practices. Moreover, the study claims, value gains will be bolstered by heightened demand for more costly linerboard grades that can support high-quality printing and graphics.
Further, demand for folding paperboard boxes will rise 1.8% per annum through 2014, slower than the corrugated box pace, as folding cartons face stiff competition from alternative packaging (e.g., pouches, blister packs and clamshells) in many markets. Source reduction efforts will also restrain demand. However, the study indicates, gains will be supported by advances in printing and graphics capabilities and a more favorable environmental profile than plastic packaging. Set-up box demand will be supported by their widespread use in high-end confectionery, silverware, and jewelry applications.
Food and beverages will remain the largest box market, accounting for 45% of demand in 2014, the report reveals. Good prospects for boxes are expected in markets such as frozen foods, dairy products, and meat, poultry and seafood products. Other nondurable goods markets offering favorable opportunities for boxes include cosmetics and toiletries, and rubber and plastic products. In the durable goods sector, box demand will post healthy gains in the machinery and equipment, motor vehicle parts, and instruments markets as both industrial machinery and automotive industries recover from sharp declines in the 2004-2009 period. In nonmanufacturing markets such as retail shipping and carry-out foodservice, box demand will be supported by consumer preferences for online shopping and food prepared or eaten away from home.

ContainerBoard Supply Continues to Tighten

Consistent with Coy Paper's past reports, the containerboard market is witnessing an increase in shipments (up 6% February 10 vs 09) and lower inventories (down 97,000 tons). Exports remain strong and operating rates are hoovering at 95%. Most USA producers have announced a $60/ton price increase and the European manufacturers are beginning to also report increases.

Neenah Paper Announces Organizational Changes

Neenah Paper reported that John P. O'Donnell will be the Chief Operating Officer, reporting to Sean Erwin, Chairman and Chief Executive Officer, effective June 1. Mr. O'Donnell has been President of Neenah's Fine Paper segment.

Worldcolor to Close Printing Plant

Worldcolor reported it will close another facility, Dyersburg, TN, in early 2011. This location joins four others Coy Paper had announced earlier, Carroll IA, Oberlin OH, Bromont QB, and Richmond ON. The Tennessee plant has rotogravure and web offset capabilities and printed magazines, catalogs and freestanding inserts.

Apple’s IPAD Confirms Publishers for the EReader

Apple just confirmed an agreement with five of the six biggest publishers for books to be included on the IBookstore application. Although Random House is still considering working with Apple, Macmillian, Simon & Schuster, Hachette, HarperCollins, and Penguin have all signed up. Apple will market these publisher’s books on the IPAD and collect a 30% commission on the selling price.

Finnish Strike is Over

Union officials confirmed an agreement and this will end the Finnish stevedore strike. The Transport Workers’ Union and the employers’ representatives accepted a compromise. The strike began on March 4th, and has temporarily shut down 50% of paper production in Finland. Mills will restart gradually over a few days, to ensure paper quality reaches target level.

Caraustar Announces Paperboard Price Increase

Caraustar announced they will increase prices by $60 per ton on all uncoated recycled paperboard grades and $45 per ton on coated recycled paperboard grades produced by its mills. The increases are effective with shipments after April 5, 2010. Coy Paper notes that inventories are becoming tighter and demand up slightly; therefore, this increase should have limited challenges.

Carbonless Price Increase

M-Real has reported that they have experienced a significant increase in raw material costs, particularly pulp and logistic costs. Accordingly,M-real Zanders will increase prices for carbonless papers for deliveries after 19 April 2010 by 10%.

Update on Chilean Pulp & Paper Market

Reports from Chile after the earthquake and tsunami hit the country is that paper companies are making progress on restarting their operations, however, pulp mills are still idle, as their damage is more extensive. Chile’s only two newsprint suppliers, CMPC’s Inforsa mill and Norske Skog’s Bio Bio mill, are still closed. They have combined capacity of 340,000TPA of newsprint. This will artificially assist the USA newsprint producers.

Kruger Extends Downtime at Wayagamack Paper Mill

Kruger will extend the downtime of PM 3 at its Wayagamack Mill in Trois-Rivieres, Quebec, Canada for a period of one month starting March 31.
Kruger said the decision to extend downtime is the result of low demand for directory paper from the ongoing weak market conditions. Recall the Coy Paper news releases outlined this paper machine was shut down on December 31, 2009 with a planned restart set for March 31.
Production is now planned to resume on May 1.
PM 3 has the capacity to produce about 74,000 metric tons per year of directory paper.

NewPage to Purchase Domtar Coated Product Lines

NewPage announced they reached an agreement with Domtar to purchase Domtar's coated groundwood paper product lines and all the respective accounts and book of business. The purchase will include the coated groundwood paper book of business, Choctaw, Saturn, and Jupiter brands.

Deutsche Bank reports on a Potential Additional Tax Credit

from Deutsche Bank - Equity Research

We have received some reports from our industry contacts that recent legislative moves may allow the industry to claim a Cellulosic Fuel credit (IRC 40(b)(6)) for Black Liquor produced and fired between 1/1/10 and the enactment date of the new bill (likely to be in next several days). This could produce a substantial 1Q10 windfall for kraft-based producers. The size of the cellulosic fuel credit is $1.01/gallon, rather than $0.50/gallon with Black Liquor. The cellulosic credit appears taxable, while the tax status of the black liquor credits is still an open question. It also appears that companies may have the ability to re-file for 2009 (depending on their tax situation) and claim the larger cellulosic credit, rather than the black liquor credit. Our contacts suggest that all the big four accounting firms as well as several law firms are currently working on this issue.
Thus, it is safe to assume most paper companies are digging into the
issue.

Update on Containerboard Market

Containerboard and box shipments for February were up 6.0% ! Also, inventories fell at mill and at box plants by 96.800 Tons - roughly 4.5%. More good news included the industry ran at 95% of capacity in February and USA containerboard exports totaled
319,000 tons, up 49.1% from 2009. This is all good news for the producers .... converters, look for price increases.

Many Paper Producers Announce Price Increases

Many of the major paper producers in North America recently announced price increases on coated, uncoated and supercalendered paper of about $30/ton effective with shipments on or after April 1st. Companies to announce so far include NewPage, Kruger, Verso, AbitibiBowater, Catalyst, Evergreen Packaging, Myllykoski, FutureMark, West Linn Paper and Irving Paper. Supply as a result of shuttered equipment is reduced, demand appears up, and the mills are grabbing this opportunity to announce new price levels. Look for the producers to attempt to raise prices throughout the year.

Update on Paper Markets for February

The stronger shipments were reported for most of the paper and pulp grades in February, as well as December and January, this will support our position that the business is now recovering and the paper industry, accordingly, is reviewing pricing increases.
Uncoated Papers
The Uncoated Freesheet shipments were up 5.7% from February 2009. This was the largest increase in over 3 years (Note, February 2009 vs 2008 was down 20.8%).
Mills such as International Paper and Domtar continue to take significant capacity reductions.
Coated Papers
Coated paper shipments also witnessed increased shipments.
Lightweight (publication) coated paper (LWC) shipments increased 21.0% versus February 2009 and coated free sheet increased 9.7%. (Note, last January, those two
categories posted declines of 37.4% and 24.6%, respectively).
Producers of coated free sheet will continue to benefit from duties recently announced for some Chinese and Indonesian imports and I suspect shipments will continue to advance.

Market Pulp
Domtar announced a $50/mton price increase in North America and Europe for both the NBSK and NBHK grades, effective April 1. If successful, the hike would be the 10th price increase in the last 12 months. The market has absolutely tightened as a result of both the Chile earthquake and strike at the Finnish ports. Additional market pulp producers that reported an increase include, Sodra's $40/ton April price hike on NBSK for Europe. Fibria announced a $50/mton global increase on (hardwood) BEK.
Reports suggest that the $30-50/mton price increase for March on softwood and hardwood grades in North America, Europe and Asia have gone through without much push back.
If the April price announcement is successful, NBSK pulp prices would
be up 50% from this time in 2009. NBSK (benchmark grade) pulp list price will be at $960/mton, up 30%.

Domtar Closes a Paper Mill

Domtar just announced it will permanently close its coated groundwood publication paper mill in Columbus, Mississippi. The Domtar coated groundwood paper mill has an annual production capacity of 238,000 tons of coated groundwood and 70,000 metric tons of thermo-mechanical pulp.

Chilian Earthquake Disrupts Pulp Supply

Notes from Deutsche Bank - Equity Research paper

Chile produces nearly 5Million MTA of market pulp or 8% of the world's supply. Nearly 80% of the pulp capacity is located within 150 miles of Concepción.

Reports from the region suggest that mills will be down for 30-60 days. Aftershocks could easily push the restarts back even further. If the entire Chilean industry is out for just 2 months, this could result in a loss of 800,000/MT.

Some analysts are predicting modest price gains of only $30-40/MT (3-5% increase). On the other extreme, some contacts in the pulp brokerage community are pointing to April list price increases of as much as $80-100/MT (9-11% increase). Deutsche Bank forecast is for April hikes in the $60/MT range.

OnLine Sales Continues to Grow

Notes from a Forrester Research Report-
Online retail sales, in the US, excluding auto, travel and drugs, grew 11% in 2009 to $155.2 billion or 6% of total. Forrester predicts 11% growth in 2010, reaching $172.9 billion or 7% of sales and similar growth annually through 2014, bringing online sales up to $248.7 billion by 2014.
The overall web-shopping audience is growing, up 4% in 2009 to represent 67% of the US online population. Forrester predicts consumer electronics to continue seeing double digit growth online, with apparel, accessories, footwear seeing a 17% growth online in 2009 and expecting over 10% growth for the next few years.
The trend for online sales is mirroring online/ Digital advertising.

St Mary's Paper will Shut Down Paper machine

St. Marys Paper will close PM 5 at its Sault Ste Marie, Ontario mill. The machine has a capacity to produce 130,000MTA of SC-A paper. The mill’s other machines, PM3 and PM4, have been closed since December.

Catalyst May Restart Two Paper Machines

Catalyst has proposed a plan to the union that could restart 2 specialty paper machines at the Elk Falls paper mill. The Elk Falls mill is located in Richmond, BC with annual capacity of 153,000 tons of uncoated mechanical specialty paper and 373,000 tons of newsprint.

Advertising, both Print and Digital, will Grow

The Outsell research firm released an optimistic report on a forecast growth for both digital and printed advertising. The report also outlined digital advertising ($119.6Billion) may exceed print ($111.5Billion) for the first time. Magazine advertising spending is expected to increase 1.9% or $9.4Billion, including a 4.2% increase for consumer titles and 1% for B-to-B titles. One additional trend noted in the report was business to business advertisers see cross-media marketing as most effective.

Shipping Ports in Finland Remain on Strike

Following up on the Coy Paper earlier releases, the stevedores that work the ports in Finland remain on strike. The Finnish Transport Workers Union has forced several of the Finnish paper makers to cease operations. The mills are not able to receive raw materials, they are unable to warehouse finished paper, and most importantly, the paper mills can not ship paper.
Of notable mention, the following mills are shut down
-UPM shut down Rauma mill, capacity 720,000MT/YR, of coated mechanical and 540,000 mtpy of supercalendered paper
-Sappi closed its Kirkniemi mill, 740,000MT/YR of coated mechanical.
-UPM closing of Kaukas (Lappeenranta), 570,000MT/YR of coated mechanical and Kaipola, with 700,000MT/YR of coated mechanical, directory and newsprint papers
-UPM at Kymi, 850,000MT/YR of coated and uncoated woodfree capacity.
-Stora Enso will begin closing mills.

Negotiations with the stevedores continue. 
Finland has 25 major ports, 10 of which handle 75% of their exports.

Commercial Printers Down 7.2%

Consistent with our Coy Paper earlier releases, initial reports outline shipments for commercial printers declined 7.2% in January (versus January 2009) to $6.7Billion. Many believe this might be a trend, with the advent of EReaders and other electronic devices cannibalizing traditional print.

January Paper Shipments Up

The official American Forest and Paper Association (AF&PA) released final figures for January and confirmed Printing and Writing paper shipments were up 8.9% (vs. January 2009).
Highlights of January (versus JAN 2009 report include-
-Coated Papers up 14.6%
-Uncoated Mechanical up 28.3%
-Uncoated Freesheet up 1.9%
-USA Purchases (shipments and imports less exports) up 4%
Inventories of Printing and Writing rose 1%, up 9800 tons from December 2009.

Fraser Paper to Emerge with New Name

When Fraser Paper completes its sale (sometime in April), the new specialty papers business will consist of the integrated pulp, energy, and paper operation in Edmundston, New Brunswick and Madawaska, Maine, as well as two lumber mills located in Plaster Rock and Juniper, New Brunswick. The company will be called Twin Rivers Paper Company. This new company name is reflective of the location of the pulp and paper operations at the Madawaska and Saint John Rivers.

Paper Industry Continues Growth into Alternative Energy

The worldwide producers of pulp and paper have substantially increased the use of renewal wood for biomass for their massive energy demands. The result is less (nonrenewable) fossil fuels consumed. A recent release from the Wood Resource Quarterly confirmed that since 2006, energy generated from biomass has gone up over 50%, last year accounting for 18% of the total energy consumption by this industry sector.

Apple IPAD Coming...could be Game Changer

Apple delayed the introduction of its new IPAD EReader to retail stores until April 3, although orders will be accepted on the web as early as March 12. The IPAD will come with the iBookstore application and 11 other free download applications. Many are watching this device with interest to determine if Apple will change the way we read, much like this company changed the way we listen to music and use our phones.

Coy Paper Expands into AF 21 Fire Proof Paper Chemicals

The Coy Paper Company has always focused on the specialty paper market and now has included chemicals to its product offerings. The company has technical support and blending facilities and will market and distribute the Hartindo Anti Fire chemicals to include AF 21, AF 11E and AF 31.
Many paper mills and coaters are evaluating Coy's product to include in their product lines. Imagine, a fire proof paper and a flame proof paper!!
The chemical offers permanent protection from fire once applied, Hartindo AF21 will protect your home and family, hotels, night clubs, schools, Hospitals libraries and museums, etc. from the ever present danger of fire, giving you peace of mind 24 hours a day. Contact Coy Paper at info@coypaper.com for more information.

Prospective on Publication Paper Pricing

Even with a slightly improved demand at the end of 2009, coated publishing paper prices are almost $150 below their mid-2009 peak. Despite the combined rising costs of raw materials and the loss of black liquor credits, pressure continues on margins for the producers of coated groundwood publication papers. The forecast is for coated paper prices to continue to trend upward and producers to look for more improvement throughout the second half of 2010, assuming the economy does not enter another dip.

While it was true that during 2009, coated paper prices declined, but, in the first half, so did production costs. Unfortunately, the price slide continued despite the return of increased costs toward the end of the year. Pulp costs increased such as softwood pulp, up $200 per ton since their 2009 low, while coated publication prices fell $130 over the same time frame. Producers are also facing further pressure from the rising costs of energy, chemicals, transportation, and other cost components.

The challenge remains for mills due to rising fiber costs and the elimination of the black liquor credits (which will not be renewed). These credits reached as much as $100 per ton of paper. Combined with the other cost concerns noted above, producers will face tremendous margin pressure in 2010 if prices remain at their current levels. Accordingly, look for producers to introduce increased pricing thorough 2010.

Pulp & Paper Companies Report Increased Profits in 4Q

The index known as the Pulp & Paper Week composite (includes 23 USA companies) reported forth quarter 2009 earnings up 60% (vs. 4Q08) with sales down 7.5%. For all of 2009, the group’s earnings were down 34.2% with sales down 11.4% when compared to 2008 results. It was noted that 15 of these companies benefited by the alternative fuel black liquor tax credits which offset losses, improved balance sheets, and substantially boosted earnings.

Worldcolor to Close, yet another, Printing Plant

Worldcolor will close its plant in Carroll, IA which will be the fourth closure in the last 12 months. Other shutdowns previously reported on Current News on the Pulp and Paper Industry were located in Oberlin OH, Bromont QB, and Richmond ON.

Post Office Documents Plan

So many of our readers mail publications or print direct mail marketing pieces; accordingly, a summary of the newest USPS plan. Mail volume is forecast to drop 15% from 177Billion pieces to less than 150Billion by 2020. If no action is taken, this will result is a deficit of -$240Billion by 2020.
Proposed plan is to
-Restructure retiree health benefits
-Fewer delivery days; more locations, more self service kiosks, more user friendly website
-Establish more flexible workforce
-Review pricing on each program, to include a price increase in 2011
-Introduce more products

USA Manufacturing, including Paper, Expanded in February

Notes on report from Business Wire
The Institute for Supply Management (ISM) reported that US economic activity in manufacturing expanded in February for the 7th consecutive month, with the overall economy growing for the 10th consecutive month. New orders and production showed significant month-over-month growth, with the Employment index increasing for the 3rd consecutive month. The paper and printing sector indicators are summarized below.

Finnish Mills Look at Downtime because of Strike

The Finnish Transport Workers’ Union went on strike this week. If the strike effects the Finnish ports, mills such as UPM Kymmene will lack raw materials, paper storage, and a means to export paper. The mills will have no choice but to shut down. Note, almost half of UPM’s paper production capacity is in Finland, but they plan to deliver orders from mills in other countries.

Preliminary Ruling on Anti-Dumping of Coated Papers

USA Department of Commerce reported on their preliminary results in its countervailing duty investigation of coated paper from China and Indonesia. They announced a preliminary duty of 12.83% on products from China, and 17.48% on products from Indonesia. Asia Pulp & Paper (APP), a major exporter of coated paper from China and Indonesia to the USA, expressed disappointment with the initial findings.

Department of Commerce’s final ruling is expected to be released in September along with the final ruling on anti-dumping. The last phase of this investigation will occur in October or early November, when the USA International Trade Commission will determine if the domestic paper industry has been harmed.

USA Printers share in the foreign producers disappointment on this ruling. Their coated paper costs will surely increase in a challenging market.

International Paper Closes Another Paper Mill


International Paper, the world's largest producer of paper, will permanently shut down the two remaining paper machines at its Franklin Virginia plant.

Are E-Books Really Taking Over?

To date, electronic books only make up less than 2% of all books sold. Trade books, both hard and paperback, are 35% and mass market printed books are 21%. As far as distribution is concerned, Book chains sell nearly 30% of all the books sold, followed by e-commerce sites at 20%, and the independent shops account for 5%. I would image the digital distribution will be a new channel and experience robust growth once the EReaders start hitting the market in a bigger way.

The Power of the Printed Word

Condé Nast, Hearst, Meredith, Time Inc. and Wenner Media with the support of Magazine Publishers of America and Bonnier Corp.; National Geographic; ESPN; and New York Media, have reported they will place front-of-book advertisement placements to answer tough questions about their relevancy. In all, close to 100 titles are planning to give up prominent space in their issues for an industry ad campaign that aims to promote magazines as vital.
The community is ferociously determined to correct the misconceptions that have been swirling around the advertising industry. The primary objective is to confirm that printed magazines are still exciting, Mobile, and will still be a strong presence for all to read 'the printed word'. The publications will also educate the public on how, long term, electronic media will devalue its product by offering its content for free online.

European Paper Output Confirmed Down in 2009

Just reading another report confirming producers of Paper and Board in Europe were down nearly 11% to 90Million tons, from 2008. This is the lowest level of shipments since 2001. Similar to the USA, the European manufacturers experienced weak demand and several capacity closures.

Update on Market Pulp

Domtar and SAPPI recently announced yet another increase for their market hardwood pulp of $50/ton for shipments. It was also reported that most of the producers of BEK will increase pricing $30/ton. This move follows all the North American producers of softwood pulp with the earlier announcement for an increase of $30/ton. Once all prices are into the market, the NBSK price for North America will be $910/MT and Europe will be $890/MT.
Most pulp buyers will not have a choice, but to pay the increase. Pulp supply has been tight due to continued strong demand in China. Also, the earthquake in Chile will impact several producers.
Pulp prices have staged a remarkable rally in the last 10-11 months, with most grades rising more than $200/MT.

2010 and the Paper Industry

The last decade yielded only limited new domestic capacity for the paper industry and an unprecedented number of plant and equipment shut downs. The industry is entering 2010 with a slight breeze to our backs with many markets witnessing small increases in order books from end users that most likely had to restock. Unfortunately, the economy is still not improving to a point that housing starts, bank credit, nor consumer buying has returned with any sustainability. Many of the raw materials consumed in paper making have increased and the black liquor alternative fuel credit is gone. NBSK pulp may raise to almost $880/MT – a 16 month high - and come close to matching the August 2008 peak.
Newsprint continues its challenge into 2010, with both advertisers and readers down, although pricing has improved for the producers. The price has steadily risen from a recent low of $450 to nearly $530/MT. The forecast is for still more shuttering of equipment to balance, the declining demand, with supply.
Uncoated Freesheet producers have announced an increase of $40/ton on business papers and demand appears to be stabilized (although current base is low). The major producers reduced capacity in 2009 and this will balance the market.
The manufactures of Coated Freesheet and Groundwood are still experiencing challenges from the a reduction in both advertising pages and over all circulation. The manufactures have announced price increases, but printers continue to push back citing fear of alienating their customers with advanced pricing.
Virtually all products for Containerboard have increased prices, and converters are paying the new levels. Current order backlogs are OK at best, with export shipments doing well. Real challenge is if the economy does not improve, no one will consume goods that go into boxes.
Our forecast is for a gradual recovery for the paper industry, and trending up from a poor 2009.

Containerboard Price Hike Still On

As of today, all the major producers of ContainerBoard including International Paper, Georgia Pacific, and Temple Inland have increased pricing. These three leading producers are digging their heels in on the $60/ton announcement for April 1. More than likely, this second increase of the year will happen, despite persistently weak demand. Key issues include tight supply/demand balance, lean inventories, and surging fiber costs.

WorldColor Closes Another Plant

The printing plant in Oberlin, Ohio owned by WorldColor will shut its doors by May 21. This facility focused on direct mail and magazine inserts.