Friday, April 02, 2010

Coated Paper Capacity Forecasted to Decline

AF&PA recently published a report on capacity, included is executive summary-
The annual survey of the American Forest & Paper Association reported declines in the U.S. capacity for all of the Printing & Writing Paper grades, excepting uncoated mechanical. Coated mechanical capacity fell -10.4% in 2009 and is forecast to decline by -6.8% in 2010 and -1.9% in 2011, remaining flat in 2012. Coated woodfree capacity in the U.S. decreased by -11.8% in 2009 and is projected to fall
-4.3% in 2010 and remain unchanged in 2011 and 2012. Uncoated woodfree declined -5.4% for last year, but it has decreased -25% since 2000. Further decreases are forecast for 2010, -6.3% and 2011, -0.7%. There is no change forecast for 2012. Of the four P&W paper grades, the only increase in 2009 was in uncoated mechanical capacity, 6.2%. Projected numbers indicate continued expansion: 4.8% in 2010, 1.6% in 2011 and 0.6% in 2012.

1 comment:

Anonymous said...

Most industry experts and newsletters forecast a continuous decline in capacity - at least in the UNITED STATES. If producers are successful in reducing supply, more M&A will occur and paper prices will increase.