By John Maine, Vice President, World Graphic Papers, RISI
RISI has been predicting a major reversal of the trend in North American coated mechanical paper "apparent" consumption, and the new data that was just released by the PPPC show that the turnaround showed up with a vengeance in May. The year-to-date figures had been up 3.4% though April, which was perplexing given all of the weakness in the major end-use markets such as magazines and catalogs. Despite this weakness, these end-users continued to buy paper, amassing a sizable inventory, while their true consumption of paper plunged.
The statistics released in May were shocking: North American demand declined a whopping 13.5%. End-users had finally run out of room for inventory and started cutting orders sharply to match the performance of their true consumption of paper, which has been very weak all year.
The result of the slump in orders for May was a sharp rise in mill inventory of paper. Up until the last two months, all of the inventory build had been at the printer or end-user level, while mill inventories declined and remained very lean. During April and May, mill inventories jumped 85%, rising from 155,000 tons in March, to 289,000 tons in May. These inventories are still below year-ago levels, so they are not out of line. However, the speed with which these inventories are rising (2 months) is dramatic, and the fact that end-user and mill inventories are now both high while demand is weak is very disturbing to the market.
Thursday, June 26, 2008
Capital Spending of North American Paper Producers to Remain at 2007 Levels
As more companies focus on controlling energy costs and arriving at the most profitable grade mix, RISI predicts that 2008 capital spending will decrease slightly or remain at the same levels as in 2007. Last year, capital spending was markedly lower than it had been a decade ago and, right now, the likelihood is that 2009 will not see appreciable change. Projects that address energy costs or that restructure machines for value added grades or that will change the grade mix are the most probable options as they serve the interest of improving profitability.
NewPage Takes Additional Downtime
NewPage announced it will take approximately 34,000 tons of coated paper downtime next month in addition to the 25,000 tons the company announced on June 5. The two coated freesheet machine at the Kimberly, Wisconsin mill will account for approximately 18,000 tons of the 34,000 tons of downtime. The balance will come from closure of the Niagara mill on June 21, which produces lightweight coated (LWC) groundwood papers.
Business Papers Price Increase
A $60 per ton price hike on cut-size uncoated free sheet (business papers) is
here to stay. Other portions of uncoated market such as offset rolls are not enjoying same demand, so the new price will not hit all market segments equally. Most producers continue to warn about an additional "cost- driven" price increase attempts later this year.
here to stay. Other portions of uncoated market such as offset rolls are not enjoying same demand, so the new price will not hit all market segments equally. Most producers continue to warn about an additional "cost- driven" price increase attempts later this year.
UPM Launches Carbon Footprint Calculator
UPM has launched a new tool to calculate the carbon footprint of its paper products. Customers can now estimate their own carbon footprint based on the ten elements of the Carbon Footprint Framework for Paper and Board Products, which was developed by the Confederation of European Paper Industries (CEPI). The tool is accessible through the Paper Profile on UPM’s Web site.
COATED GROUNDWOOD UPDATE
• Notes from Deutsche Bank
Watch this space - - - the presence of large private owners appears to be changing behavior. Earlier this month in announcing market downtime, NewPage pointed to rising inventories as well as slower demand from advertisers. We have reason to believe that other players may be quietly taking downtime as well. It also makes a current pricing initiative interesting to watch since demand is slowing, but costs are surging. A host of players, domestic and offshore, have announced coated paper increases over the past
several weeks. In the US, Verso announced a series of $50/ton price increases for June 1 on light-weight coated (LWC) and other coated grades. AbitibiBowater and others have also announced hikes.
Watch this space - - - the presence of large private owners appears to be changing behavior. Earlier this month in announcing market downtime, NewPage pointed to rising inventories as well as slower demand from advertisers. We have reason to believe that other players may be quietly taking downtime as well. It also makes a current pricing initiative interesting to watch since demand is slowing, but costs are surging. A host of players, domestic and offshore, have announced coated paper increases over the past
several weeks. In the US, Verso announced a series of $50/ton price increases for June 1 on light-weight coated (LWC) and other coated grades. AbitibiBowater and others have also announced hikes.
NEWSPRINT Update
June prices for 30-lb newsprint rose $20/mton to $700/mton - - - a 12 year high. Furthermore, Leading producers have announced a $60/ton price hike for later this summer. Many publishers are bracing for a $20 increase in late Fall.
Additional hikes will likely be dependant on the willingness of industry leaders to take a hard-line with customers in addition to removing capacity. The industries largest producer, AbitibiBowater suggested that it would look at further supply reductions as we approach year-end. On the demand side, consumption at USA dailies fell
13.7% over last 12 months.
Additional hikes will likely be dependant on the willingness of industry leaders to take a hard-line with customers in addition to removing capacity. The industries largest producer, AbitibiBowater suggested that it would look at further supply reductions as we approach year-end. On the demand side, consumption at USA dailies fell
13.7% over last 12 months.
Tuesday, June 17, 2008
SMART Papers Appoints New Sales VP
SMART Papers has named Don Butts vice president of sales for its Merchant Channel. Mr. Butts will be responsible for sales to all paper distributors in North America. He will be based out of the company’s Hamilton, OH headquarters. Butts spent 11 years at Domtar, six of which he held the position of vice president of sales. Prior to that, he worked for Boise Cascade in a variety of management positions. Before joining Boise, Butts worked as a national account manager for Mead Paper and handled the RR Donnelley account.
Paper.com markets all the Smart Paper products, all items ship within 24 hours after order placed.
Paper Continues to Witness Price Increases
We, at Paper.com, continue to witness price increases – this time on all carbonless, thermal, and coated bonds effective with shipments after June 30th. Producers site cost pressures from energy, transportation, fiber, and chemicals. This coupled with lower capacity and strong demand.
Another interesting development, specific to our thermal papers, the US Department of Commerce recently announced preliminary ruling for ‘dumping charges’ against mills in China and Germany. The tariffs range from 7 to 33%; making imports a very expensive alternative.
These increases are in addition to our previously announced for all copy paper, effective June 16, of approximately $1.50/carton on 20lbs and $1.80 per carton on 24pound.
Another interesting development, specific to our thermal papers, the US Department of Commerce recently announced preliminary ruling for ‘dumping charges’ against mills in China and Germany. The tariffs range from 7 to 33%; making imports a very expensive alternative.
These increases are in addition to our previously announced for all copy paper, effective June 16, of approximately $1.50/carton on 20lbs and $1.80 per carton on 24pound.
Too many Environmentally Friendly Certifications!@#$%&
In the late 1990’s the Forest Stewardship Council (FSC) and the Sustainable Forest Initiative (SFI) were introduced. Both are third party certification parties that review the entire supply chain for a fee. The certificate confirms the chain of custody for standards that address the fiber content and the forest, which was harvested. Certified papers are more expensive. The board conducts an audit of the entire process from the tree to the production through to the distributor or printer. Paper.com has many paper items that are FSC and SFI certified in the new Green Store, along with thousands of other environmentally friendly papers. Including paper with all the popular certifications such as Green Certification, Alternative energy Certification, Tree Free Certification, Chlorine Free Certification, 25-100% recycled Certification, Green Seal Certificate, etc.
Update on Uncoated Free Sheet
Notes from Deutsche Bank Research Paper
Following initial announcements by Boise, Domtar, International Paper and several other producers have come out with $60/ton price hikes on cut-size (copy paper) and offset rolls for June and July. This would be the second price hike in 2008 on uncoated grades - - - the result of
significant cost increases in energy, chemicals, transportation and fiber. However, demand remains lackluster. Shipments declined 9.6% vs March ’07 and preliminary data suggests that April was similarly weak (down -10% in the US).
Following initial announcements by Boise, Domtar, International Paper and several other producers have come out with $60/ton price hikes on cut-size (copy paper) and offset rolls for June and July. This would be the second price hike in 2008 on uncoated grades - - - the result of
significant cost increases in energy, chemicals, transportation and fiber. However, demand remains lackluster. Shipments declined 9.6% vs March ’07 and preliminary data suggests that April was similarly weak (down -10% in the US).
Update on Coated Groundwood
Notes from Deutsche Bank Research Paper
Most producers, both domestic and offshore, have announced coated
paper increases over the past several weeks. In the USA, Verso announced a $50/ton price increases for June 1 on light-weight coated (Publication) and other coated grades. AbitibiBowater and others have also announced hikes. In Japan, Nippon and Oji have both announced $100/ton hikes on export coated publication papers. Of note; US shipments rose an impressive 10.3% so far this year. With rising costs & weak US$, it creates an interesting
dynamic. There is growing evidence that demand is weakening. As we have noted, contacts in the printing distribution community are reporting that high paper prices and a slower economy are triggering reductions in some cataloging budgets. Late last week in announcing
25K of market downtime, NewPage pointed to rising inventories at a number of printers as well as slower demand from advertisers.
Most producers, both domestic and offshore, have announced coated
paper increases over the past several weeks. In the USA, Verso announced a $50/ton price increases for June 1 on light-weight coated (Publication) and other coated grades. AbitibiBowater and others have also announced hikes. In Japan, Nippon and Oji have both announced $100/ton hikes on export coated publication papers. Of note; US shipments rose an impressive 10.3% so far this year. With rising costs & weak US$, it creates an interesting
dynamic. There is growing evidence that demand is weakening. As we have noted, contacts in the printing distribution community are reporting that high paper prices and a slower economy are triggering reductions in some cataloging budgets. Late last week in announcing
25K of market downtime, NewPage pointed to rising inventories at a number of printers as well as slower demand from advertisers.
Update on Containerboard Grades
Notes from Deutsche Bank Research Paper
Flooding forced Weyerhaeuser to shut down is Cedar Rapids, IA, Containerboard mill (970,000/tpy). The impact is unclear -- the market is already tight with International Paper's Vicksburg mill outage. Major producers (70% of NA capacity) have announced a $55/ton price hike for July 1, and Smurfit and International Paper have now followed with a box hike.
In light of market dynamics, this is not a surprise. The big obstacle will be making prices "stick" in the wake of sluggish box demand. The cost story is mixed. While energy costs continue to
surge, rising export freight rates and problems finding shipping space have put pressure on OCC pricing since beginning of year.
Flooding forced Weyerhaeuser to shut down is Cedar Rapids, IA, Containerboard mill (970,000/tpy). The impact is unclear -- the market is already tight with International Paper's Vicksburg mill outage. Major producers (70% of NA capacity) have announced a $55/ton price hike for July 1, and Smurfit and International Paper have now followed with a box hike.
In light of market dynamics, this is not a surprise. The big obstacle will be making prices "stick" in the wake of sluggish box demand. The cost story is mixed. While energy costs continue to
surge, rising export freight rates and problems finding shipping space have put pressure on OCC pricing since beginning of year.
NewPage Taking Mill Down Time
NewPage Corp. will be taking approximately 25,000 tons of coated paper market-related downtime in June and July throughout its mill system. Several machines will be involved, and each will take advantage of specific times to complete planned maintenance and capital work.
Meanwhile, two paper machines at the Niagara, WI, facility that were slated to run until this fall will now be permanently closed on July 12. This reduces production by an additional 50,000 tons. The Niagara machines produce lightweight coated groundwood papers used in magazines and catalogs
Meanwhile, two paper machines at the Niagara, WI, facility that were slated to run until this fall will now be permanently closed on July 12. This reduces production by an additional 50,000 tons. The Niagara machines produce lightweight coated groundwood papers used in magazines and catalogs
Corporate Express Recommends Staples Bid
Corporate Express will recommend a $14.36 per share takeover bid by Staples Inc. to shareholders, according to the Associated Press. The decision reverses an earlier plan to merge with French competitor Lyreco. Including Corporate Express debt, the offer values the company at around $4.8 billion.
Potsdam Specialty Paper acquires MeadWestVaco’s NY mill
-- Converting Magazine,
MeadWestvaco Corp. (www.meadwestvaco.com) will sell the MWV Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper Inc. (PSPI). MWV Specialty Papers will continue to own and operate its Willow mill in South Lee, MA. The sale is expected to close in the third quarter of 2008.
PSPI is part of an investment holding company with offices in NY, Hong Kong, and Toronto, that has the financial resources to continue growing the business, expanding the product portfolio, investing in the people and facilities, and rapidly expanding the global reach of the business to new customers. PSPI will be part of a portfolio of global businesses that focus on niche products and markets in the value-added paper and coatings distribution business.
The mill’s current management team will remain in place following the sale, and all employees will transition to PSPI following the completion of the sale.
MeadWestvaco Corp. (www.meadwestvaco.com) will sell the MWV Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper Inc. (PSPI). MWV Specialty Papers will continue to own and operate its Willow mill in South Lee, MA. The sale is expected to close in the third quarter of 2008.
PSPI is part of an investment holding company with offices in NY, Hong Kong, and Toronto, that has the financial resources to continue growing the business, expanding the product portfolio, investing in the people and facilities, and rapidly expanding the global reach of the business to new customers. PSPI will be part of a portfolio of global businesses that focus on niche products and markets in the value-added paper and coatings distribution business.
The mill’s current management team will remain in place following the sale, and all employees will transition to PSPI following the completion of the sale.
Friday, June 06, 2008
Paper Mill Revived
In 2000, the Newton Falls Paper Mill was one of 600 Paper mills operating in the USA when it closed later that year. The mill's story was not to dissimilar to the shuttered mills in Great Barrington, MA., Augusta, GA., Lufkin, TX., Brewer, ME., and Deferiet, NY. - older equipment that could not produce product as economically as the newer, bigger machines. However, the story was quit different for the Newton Falls, NY facility - they found an investor (funding $20milllion to acquire the mill) and many of the workers continued to believe in the mill's survival - the mill reopened recently and is manufacturing 200 tons a day of coated paper. The plant runs 24 hours a day - 7 days a week supplying paper to such important companies as WalMart, and Jessica Seinfield's cookbook. With all the recent mill closures, it is nice to learn of a mill that survived!
Tuesday, June 03, 2008
Text and Cover Paper Prices also Increase
The small specialty mills, which produce Text and Cover grades such as Wausau, Neenah, Mohawk, and Smart, are all talking about a price increase. The biggest challenge is the advancement of energy cost. Recent announcements for pulp have also added pressure to producers for a price increase. Crane & Company did officially announce a price increase of 5-7% depending of the grade. In Crane’s case, they added the additional factor of spiraling costs for the cotton fiber. Crane’s announcement is for shipments after June 20th. Stay tuned for more changes. Paper.com is still able to ship at current pricing, until June 20th.
Who’s NOT on the Web?
I quote interesting stats from article in Internet Retailer magazine
>55 million US Adults do not use the Internet at all
>36million adults over 62 (74%) do not shop on line
>12 million US Internet users will not shop online for fear of supplying personal and financial information
>34 million US households that have dial up (59%) will not shop on line (21million that have broadband – will not shop online)
>17 million African Americans (59%) do not shop on line
>19 million Hispanics (58%) do not shop on line
Meanwhile, 2007 yielded a 22% growth in online sales to $165.9billion. Websites such as Paper.com that cater to niche products are forecasted to continue to grow.
>55 million US Adults do not use the Internet at all
>36million adults over 62 (74%) do not shop on line
>12 million US Internet users will not shop online for fear of supplying personal and financial information
>34 million US households that have dial up (59%) will not shop on line (21million that have broadband – will not shop online)
>17 million African Americans (59%) do not shop on line
>19 million Hispanics (58%) do not shop on line
Meanwhile, 2007 yielded a 22% growth in online sales to $165.9billion. Websites such as Paper.com that cater to niche products are forecasted to continue to grow.
Carriers all announce price Increases
Websites such as Paper.com continue to negotiate hard with truckers and carriers such as UPS, DHL, and FEDEX to hold prices – but all have announced increases due to gas prices. Even the United States Postal Service went up in May! Until the price at the pump stabilizes, we fear additional increases.
Paper.com thinks Green
As a leading online paper website, Paper.com recently introduced over 1000 items of environmentally friendly items to the site, and continue to add items daily. The company also has selected UPS as its primary carrier because of its ‘green’ position
Did you know-
>UPS was the first to begin testing for alternative fuels to power its fleet? The company now has 1600 Compressed Natural Gas (CNG), hybrid electric, and electric/propane powered vehicles on the road
>UPS uses cutting edge route optimization systems to determine most efficient routes, using less fuel.
>UPS leads the airline industry in deploying noise and emission reducing technologies.
>UPS uses innovative packaging which range from eco friendly to reusable boxes and envelopes
>UPS encourages all end users to electronically communicate for a paperless experience.
Did you know-
>UPS was the first to begin testing for alternative fuels to power its fleet? The company now has 1600 Compressed Natural Gas (CNG), hybrid electric, and electric/propane powered vehicles on the road
>UPS uses cutting edge route optimization systems to determine most efficient routes, using less fuel.
>UPS leads the airline industry in deploying noise and emission reducing technologies.
>UPS uses innovative packaging which range from eco friendly to reusable boxes and envelopes
>UPS encourages all end users to electronically communicate for a paperless experience.
Recent Printer Survey Results in
PIA/GAT reported on results from a recent survey-
23.8% of printers sited the most significant challenge for 2008 will be competition and pricing; followed by 16.8% stated inconsistent sales volume; and 15.7 claimed soft demand.
Meanwhile, printers that focused on direct mail printing grew in 2007 by 4.25%; Book printers saw growth of 2.27%; general commercial printers grew 2.09%; and quick printers enjoyed 0.73%
23.8% of printers sited the most significant challenge for 2008 will be competition and pricing; followed by 16.8% stated inconsistent sales volume; and 15.7 claimed soft demand.
Meanwhile, printers that focused on direct mail printing grew in 2007 by 4.25%; Book printers saw growth of 2.27%; general commercial printers grew 2.09%; and quick printers enjoyed 0.73%
The Dust is Settling at NewPage Paper Company
As a result of the acquisition of Stora Enso’s North American division to NewPage, much restructuring has occurred. The combined company has announced it has streamlined its coated web lines including the discounted Focus Plus, Nova Press, Advantage, Polaris Press, and CapriPress.
Thursday, May 29, 2008
Paper.com Continues as One of USA’s Largest Paper Websites
Paper executive, P. Scott Vallely and Internet expert, John Engel, the two co founders, recently announced that Paper.com LLC has been awarded top 500 Internet Retail sites in USA for 2007/08. The website, which exclusively markets paper items, has made the IR500 list every year since it was first published three years ago. With nearly 40,000 items on site, ranging from copy papers to photographic papers to scrapbook papers to handmade and exotic papers they are one of the biggest paper internet marketers. The two founders recently introduced an additional store to the site, which markets thousands of environmentally friendly papers. This new store joins the already popular stores that include Stationery, Office, School, Theme, Scrapbook, Seasonal, and Art Papers. The Paper.com site also has many links to educational Blogs, major paper mills, instruction on how to buy paper, and a conversion chart from grams to domestic weights. Paper.com is a primary online source for quality paper products.
Coated Groundwood Publication Prices Increase …. Again
As reported last month, prices rose $60/ton in April on most publication grades, and they rose
$75/ton for No. 5 40-lb offset rolls. The industry witnessed shipments advanced an impressive 10.3%. Recently, Verso has announced a $50/ton price increases on virtually all of its grades of coated free sheet, light-weight coated /publication and super-calendered (SC) papers. The increases are effective on orders shipping after July 1.
The timing of the increases would allow producers to capture the seasonally-strong late summer/autumn magazine & catalog season. The producers are all attempting to increase prices and recover rising costs.
As a side note, last week, Bloomingdales announced that it is eliminating its mail order catalog. Also, Abitibi-Bowater suggested it could add capacity to this market by converting more newsprint mills to coated paper mills.
$75/ton for No. 5 40-lb offset rolls. The industry witnessed shipments advanced an impressive 10.3%. Recently, Verso has announced a $50/ton price increases on virtually all of its grades of coated free sheet, light-weight coated /publication and super-calendered (SC) papers. The increases are effective on orders shipping after July 1.
The timing of the increases would allow producers to capture the seasonally-strong late summer/autumn magazine & catalog season. The producers are all attempting to increase prices and recover rising costs.
As a side note, last week, Bloomingdales announced that it is eliminating its mail order catalog. Also, Abitibi-Bowater suggested it could add capacity to this market by converting more newsprint mills to coated paper mills.
Recycling and the paper industry
Recycling certainly is not a new practice in the pulp and paper industry, driven by the recent need to be more sustainable. It has been going on for hundreds of years, and is generally practiced today in certain grade areas because it is economically feasible and attractive to do so, though some limited recycling is driven (or mandated) by environmental legislation in
various states and countries.
Today, very high percentages of waste paper streams are being recycled, especially in the Western world. In 2007, a record 56% of paper consumed in the U.S. was recovered for recycling, compared with 33.5% in 1990, according to the American Forest and Paper Association Paper recovery now averages approximately 360 pounds per person in the U.S.,
where the goal is 60% recovery by 2012.
In 2007, recovered fiber accounted for about 37% of the raw product used in U.S. paper mills, and 140 mills used recovered fiber exclusively, according to AF&PA figures. The environmental impact is evident in the fact that every ton of paper that is recovered saves 3.3 cubic yards of landfill space. Paper recycling activities in European countries are similar to those in the U.S., with some percentages being even higher. Although recycling has obvious environmental advantages, there are some drawbacks or developing problems that have to be considered. In regard to sustainability, for example, there is some irony in the fact that as higher percentages of waste papers and board are recovered, the more difficult and costly it becomes to establish and maintain operations based on these streams, and certain environmental tradeoffs also arise.
There also have been energy concerns in regard to some deinking/recycling processes versus corresponding virgin pulping processes. But these issues have not been resolved, and it is still unclear whether certain recycling operations might be less or more energy efficient than their virgin counterparts, and have a bigger or smaller carbon footprint.
various states and countries.
Today, very high percentages of waste paper streams are being recycled, especially in the Western world. In 2007, a record 56% of paper consumed in the U.S. was recovered for recycling, compared with 33.5% in 1990, according to the American Forest and Paper Association Paper recovery now averages approximately 360 pounds per person in the U.S.,
where the goal is 60% recovery by 2012.
In 2007, recovered fiber accounted for about 37% of the raw product used in U.S. paper mills, and 140 mills used recovered fiber exclusively, according to AF&PA figures. The environmental impact is evident in the fact that every ton of paper that is recovered saves 3.3 cubic yards of landfill space. Paper recycling activities in European countries are similar to those in the U.S., with some percentages being even higher. Although recycling has obvious environmental advantages, there are some drawbacks or developing problems that have to be considered. In regard to sustainability, for example, there is some irony in the fact that as higher percentages of waste papers and board are recovered, the more difficult and costly it becomes to establish and maintain operations based on these streams, and certain environmental tradeoffs also arise.
There also have been energy concerns in regard to some deinking/recycling processes versus corresponding virgin pulping processes. But these issues have not been resolved, and it is still unclear whether certain recycling operations might be less or more energy efficient than their virgin counterparts, and have a bigger or smaller carbon footprint.
AbitibiBowater announces third $60/ton newsprint hike of 2008
From RISI -
AbitibiBowater told customers it plans to increase the price of 30-lb (48.8 gm2) newsprint in North America by $60/tonne in the third quarter of 2008. It is the newsprint giant’s third price hike announcement of the year. If fully implemented it will take the rise in North American newsprint prices over just nine months to $180/ton.
As with AbitiBowater’s first and second quarter $60/ton hikes, this one will also be in $20 monthly increments. AbitibiBowater told customers in a May 16 letter that the company continued to experience serious cost inflation, especially in the areas of power, transportation and fiber, and was not yet generating sustainable results. This increase will bring 30 pound standard newsprint to $680/Mton.
AbitibiBowater told customers it plans to increase the price of 30-lb (48.8 gm2) newsprint in North America by $60/tonne in the third quarter of 2008. It is the newsprint giant’s third price hike announcement of the year. If fully implemented it will take the rise in North American newsprint prices over just nine months to $180/ton.
As with AbitiBowater’s first and second quarter $60/ton hikes, this one will also be in $20 monthly increments. AbitibiBowater told customers in a May 16 letter that the company continued to experience serious cost inflation, especially in the areas of power, transportation and fiber, and was not yet generating sustainable results. This increase will bring 30 pound standard newsprint to $680/Mton.
NBSK pulp prices are rising $20/metric ton
By Tom Stundza – Purchasing Magazine
Domtar informed North American customers this week that it will increase prices by $20/metric ton to $900 on northern bleached softwood kraft (NBSK) pulp, effective June 1. Purchasingdata.com’s monthly survey shows that May prices were stuck at $880 for the fifth consecutive month.
However, industry contacts tell the RISIinfo.com forest products online newsletter they have expected a price increase on NBSK because of a widely held belief that supplies would decline in the wake of maintenance downtime at many mills, as well as the recent idling of Pope & Talbot’s pulp mills. In addition, RISIinfo.com reports to its clients that most NBSK pulp is produced in Canada, where producers are facing margin pressures due to high costs for fiber, energy and a strong Canadian dollar.
Domtar informed North American customers this week that it will increase prices by $20/metric ton to $900 on northern bleached softwood kraft (NBSK) pulp, effective June 1. Purchasingdata.com’s monthly survey shows that May prices were stuck at $880 for the fifth consecutive month.
However, industry contacts tell the RISIinfo.com forest products online newsletter they have expected a price increase on NBSK because of a widely held belief that supplies would decline in the wake of maintenance downtime at many mills, as well as the recent idling of Pope & Talbot’s pulp mills. In addition, RISIinfo.com reports to its clients that most NBSK pulp is produced in Canada, where producers are facing margin pressures due to high costs for fiber, energy and a strong Canadian dollar.
Friday, May 09, 2008
Paper Prices forecasted to Continue to Increase
We at Paper.com forecast paper costs will continue advance throughout 2008. There are a few reasons for this, first, many producers have shuttered inefficient equipment and have simply taken capacity out of the market. Also, imported paper into the USA, because of the depressed dollar, has declined. It is true that overall consumption is also down, but not nearly at the same rate as the reduction of supply. Demand for paper has decreased approximately 2% a year while supply has been reduced 6%. Prices are also increasing because of the raising prices of raw material, that is, fiber, energy, labor, chemicals, and freight.
Paper prices could increase in 2008 by as much as 25% for coated papers and 20% for uncoated. This on top of increased postage for those who must mail printed promotions. A few thoughts to save on paper include purchasing paper from a website such as Paper.com – with over 40,000 different papers; purchase in bulk – the site often offers quantity discounts – if you do not see it, ask; adjust the size of your piece – uncommon sizes create waste; ask for value alternatives – a more reasonably priced paper may ‘do the trick’. Sites such as Paper.com have expert paper customer service, - call 888-Papergreat – they are available to assist you.
Paper prices could increase in 2008 by as much as 25% for coated papers and 20% for uncoated. This on top of increased postage for those who must mail printed promotions. A few thoughts to save on paper include purchasing paper from a website such as Paper.com – with over 40,000 different papers; purchase in bulk – the site often offers quantity discounts – if you do not see it, ask; adjust the size of your piece – uncommon sizes create waste; ask for value alternatives – a more reasonably priced paper may ‘do the trick’. Sites such as Paper.com have expert paper customer service, - call 888-Papergreat – they are available to assist you.
Paper.com advances Green Store
Paper.com continues to be successful in marketing Environmentally Friendly papers. They 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 over 40,000 papers, why go anywhere else, but Paper.com?
Top North American Producers
AF&PI published the following regarding mill uncoated capacity and percent market share.
Mill Capacity (000) Market share
1 Domtar 4,600 35.2%
2 International Paper 3,200 24.4%
3 Boise 1,500 11.5%
4 Georgia Pacific 1,060 8.1%
5 Glatfelter 685 5.2%
6 Wausau Paper 380 2.9%
7 Blue Ridge 320 2.5%
8 Appleton 290 2.2%
9 Finch Pruyn 250 1.9%
10 Neenah 215 1.6%
Forecast for 2008 (000s)
Shipments 11,610
Capacity 12,065
Consumption 11,862
Mill Capacity (000) Market share
1 Domtar 4,600 35.2%
2 International Paper 3,200 24.4%
3 Boise 1,500 11.5%
4 Georgia Pacific 1,060 8.1%
5 Glatfelter 685 5.2%
6 Wausau Paper 380 2.9%
7 Blue Ridge 320 2.5%
8 Appleton 290 2.2%
9 Finch Pruyn 250 1.9%
10 Neenah 215 1.6%
Forecast for 2008 (000s)
Shipments 11,610
Capacity 12,065
Consumption 11,862
Uncoated Free Sheet Capacity Update
Uncoated Freesheet is defined as papers for three primary product groups – business papers (copy paper) 43% of market, printing and converting (offset 24%, envelope11%, form bond8.5%, tablet 2%), and value added (text and cover 2.5%, carbonless 4.5%, technical 2.3%). USA demand has continued to decline from its peak of 15milion tons in 1999 to an estimated drop of 20% or 3million tons to 12million tons by end of 2008. Current drop is mainly due to electronic information replacing paper. As outlined in an earlier Paper.com new release, capacity has also declined. Nearly 2million tons were slated for curtailment or conversion in 2007 alone, this follows 435,000 tons in 2006.
Go Green: Save Money
The environmental and marketing benefits of “going green” are obvious, but many publishers are starting to realize that going green can have benefits for their budgets too.
Kristine Kern, general manager of Mansueto Ventures, told Folio: that Inc. and Fast Company actually spent less money on paper last fall when they switched to a 100-percent recycled grade made by German paper company Leipa.
When Every Day with Rachael Ray switched to 85-percent recycled paper, the quality and hard costs of production stayed about the same but gave its image a “huge boon” among existing and prospective readers.
Groundwood papers use 2.2 tons less wood than the more expensive freesheet grades, according to Frank Locantore, director of the Magazine Paper Project for Co-Op America.
Bryant Wilson, national accounts manager at paper company Frank Parsons, says “readers will be much more forgiving if the quality is slightly off” if you switch to a lower-grade paper with FSC, SFI or PEFC certifications.
That theory can also apply to basis weights and trim sizes—when Dwell reduced its trim size, it saved about seven percent in paper usage as well as 950 trees per issue, a great statistic to share with readers.
Kristine Kern, general manager of Mansueto Ventures, told Folio: that Inc. and Fast Company actually spent less money on paper last fall when they switched to a 100-percent recycled grade made by German paper company Leipa.
When Every Day with Rachael Ray switched to 85-percent recycled paper, the quality and hard costs of production stayed about the same but gave its image a “huge boon” among existing and prospective readers.
Groundwood papers use 2.2 tons less wood than the more expensive freesheet grades, according to Frank Locantore, director of the Magazine Paper Project for Co-Op America.
Bryant Wilson, national accounts manager at paper company Frank Parsons, says “readers will be much more forgiving if the quality is slightly off” if you switch to a lower-grade paper with FSC, SFI or PEFC certifications.
That theory can also apply to basis weights and trim sizes—when Dwell reduced its trim size, it saved about seven percent in paper usage as well as 950 trees per issue, a great statistic to share with readers.
Picking a Paper Alternative
Cheaper paper doesn’t have to mean lower quality, an article by
Joanna Pettas of Folio Magazine
Paper prices have gone up around 20 percent, in some cases more, and additional hikes are likely on the way—30 percent by the end of the year, by some estimates. It’s more important now than ever to consider less expensive grades, but it’s not as simple as picking one off the shelf, since the most popular grades are largely on allocation. Also, compromising too much on quality is risky in a time when the economy is strained and competition is fierce. To mitigate cost, publishers need to take a critical look at their priorities and options and compromise accordingly.
First, Prioritize
Every paper decision comes with a trade-off, whether it’s in cost, quality or availability. Peter Wilson, vice president, paper procurement and supply chain at Quebecor World, suggests running the needs of each stakeholder—reader, advertiser, editorial, production and so on—through a forced ranking process and finding a compromise. “The compromises do not necessarily make them poor decisions,” he says, noting that the essence of a good paper decision is to “minimize cost, maintain or improve revenue, and profit from the difference.”
With quality, Dedra Smith, president of Printmark West, says, “The choice is to sacrifice the amount your readers and advertisers will tolerate.”
One b-to-b publisher says, “Paper quality is about the last thing we think about.” But for Biagio Lubrano, quality control manager at Conde Nast, opacity and brightness are key, which limits grade and basis weight options. To mitigate the lack of choices, Lubrano says the company uses stochastic printing, a method that employs frequency modulation screening instead of small screening to improve color trapping. Most of the company’s magazines are now on 38 lb. to 40 lb. coated Groundwood #5, with the New Yorker on 36 lb.
Assess Your Options
Continued mill closures and paper company consolidations have shortened an already tight list of paper options. NewPage recently discontinued five paper brands following its acquisition of Stora Enso North America. The most popular brands, from any company, are increasingly hard to get.
“If it’s lightweight and cheap, it’s probably on allotment,” says Bryant Wilson, national accounts manager at paper company Frank Parsons America.
Coated Groundwood papers #4 and #5, the common alternatives to more expensive coated freesheet, will see capacity closures of 14 percent for 2007 and 2008, according to forest products information provider RISI. Prices for these grades have gone up $9/cwt in the six months leading up to February and will go up another $3/cwt in April, according to Jeff Bruce, managing director of publishing papers at xpedx, a division of International Paper.
Down from these grades, selling at 10 to 12 percent less than coated Groundwood #5, according to Bruce, are Supercalendered grades—SCA, SCA+, and SCA++—which, luckily, are “much improved” and which “printers are better able to run” in recent years, Bruce says, making them a likely alternative for magazines like US Weekly, New York Times Magazine and Woman’s World, according to Austin MacDonald, account manager at paper merchant Lindenmeyr Central, who says they’ve risen in brightness and surface quality and are now available in lower basis weights.
But even SCA grades are strained, says Ernie Wohlfarth, director of magazine paper at Time Inc. Switching papers right now is tough, he says, because options are limited. It’s important to do research up front and make careful decisions because getting your old paper back is not easy afterwards.
Wohlfarth also suggests sticking to U.S.-manufactured paper and working with an established manufacturer who is not likely to disappear, taking your allotment with it.
What Next?
The fact that a paper may be on allocation is not a reason to ignore it completely. “Plan long term and get the ball rolling,” says Wilson of Frank Parsons. “If you’re on a #3 and you want to go to a #4, express that to someone—your printer, your distributor, the paper mill—so they can facilitate that in the future.”
Reducing trim size is another possibility. “We reduced our width by 5/8 inches—from nine inches to 8-3/8 inches—and thereby saved approximately seven percent on paper usage,” says Fran Fox, production director at Dwell, which launched a redesign in February. “We saved an additional one percent when we switched from an offshore 50.7# text stock to a domestic 50# stock.”
Hi-bulk papers, which maintain the feel of heavier grades at lower basis weights, are another option. But Wilson of Quebecor World is leery of these, saying they tend to reduce the final printed gloss and uniformity of ink. They’ve also been more difficult to source, he says.
Wilson also suggests doing a “thorough scrub of the total cost of ownership” through each possible channel—direct, broker/merchant, and printer.
While companies like Time Inc. and Conde Nast mostly source their own paper, smaller publishers usually rely on printers. For some, this model is disconcerting.
“We believe the printer marks up the price substantially,” says Robert Siel, production director at Sumner Communications. “So far, our strategy has been simply to pressure the printer to provide the best quality product for the lowest price.” His company is looking into buying its own paper but isn’t sure it can beat the printer’s rates.
Also, “If we buy the paper ourselves, someone—probably me—will have to invest a lot of time calculating, purchasing and scheduling the paper supply from the mills to the print facilities,” says Siel. “This means I may need another headcount.”
Joanna Pettas of Folio Magazine
Paper prices have gone up around 20 percent, in some cases more, and additional hikes are likely on the way—30 percent by the end of the year, by some estimates. It’s more important now than ever to consider less expensive grades, but it’s not as simple as picking one off the shelf, since the most popular grades are largely on allocation. Also, compromising too much on quality is risky in a time when the economy is strained and competition is fierce. To mitigate cost, publishers need to take a critical look at their priorities and options and compromise accordingly.
First, Prioritize
Every paper decision comes with a trade-off, whether it’s in cost, quality or availability. Peter Wilson, vice president, paper procurement and supply chain at Quebecor World, suggests running the needs of each stakeholder—reader, advertiser, editorial, production and so on—through a forced ranking process and finding a compromise. “The compromises do not necessarily make them poor decisions,” he says, noting that the essence of a good paper decision is to “minimize cost, maintain or improve revenue, and profit from the difference.”
With quality, Dedra Smith, president of Printmark West, says, “The choice is to sacrifice the amount your readers and advertisers will tolerate.”
One b-to-b publisher says, “Paper quality is about the last thing we think about.” But for Biagio Lubrano, quality control manager at Conde Nast, opacity and brightness are key, which limits grade and basis weight options. To mitigate the lack of choices, Lubrano says the company uses stochastic printing, a method that employs frequency modulation screening instead of small screening to improve color trapping. Most of the company’s magazines are now on 38 lb. to 40 lb. coated Groundwood #5, with the New Yorker on 36 lb.
Assess Your Options
Continued mill closures and paper company consolidations have shortened an already tight list of paper options. NewPage recently discontinued five paper brands following its acquisition of Stora Enso North America. The most popular brands, from any company, are increasingly hard to get.
“If it’s lightweight and cheap, it’s probably on allotment,” says Bryant Wilson, national accounts manager at paper company Frank Parsons America.
Coated Groundwood papers #4 and #5, the common alternatives to more expensive coated freesheet, will see capacity closures of 14 percent for 2007 and 2008, according to forest products information provider RISI. Prices for these grades have gone up $9/cwt in the six months leading up to February and will go up another $3/cwt in April, according to Jeff Bruce, managing director of publishing papers at xpedx, a division of International Paper.
Down from these grades, selling at 10 to 12 percent less than coated Groundwood #5, according to Bruce, are Supercalendered grades—SCA, SCA+, and SCA++—which, luckily, are “much improved” and which “printers are better able to run” in recent years, Bruce says, making them a likely alternative for magazines like US Weekly, New York Times Magazine and Woman’s World, according to Austin MacDonald, account manager at paper merchant Lindenmeyr Central, who says they’ve risen in brightness and surface quality and are now available in lower basis weights.
But even SCA grades are strained, says Ernie Wohlfarth, director of magazine paper at Time Inc. Switching papers right now is tough, he says, because options are limited. It’s important to do research up front and make careful decisions because getting your old paper back is not easy afterwards.
Wohlfarth also suggests sticking to U.S.-manufactured paper and working with an established manufacturer who is not likely to disappear, taking your allotment with it.
What Next?
The fact that a paper may be on allocation is not a reason to ignore it completely. “Plan long term and get the ball rolling,” says Wilson of Frank Parsons. “If you’re on a #3 and you want to go to a #4, express that to someone—your printer, your distributor, the paper mill—so they can facilitate that in the future.”
Reducing trim size is another possibility. “We reduced our width by 5/8 inches—from nine inches to 8-3/8 inches—and thereby saved approximately seven percent on paper usage,” says Fran Fox, production director at Dwell, which launched a redesign in February. “We saved an additional one percent when we switched from an offshore 50.7# text stock to a domestic 50# stock.”
Hi-bulk papers, which maintain the feel of heavier grades at lower basis weights, are another option. But Wilson of Quebecor World is leery of these, saying they tend to reduce the final printed gloss and uniformity of ink. They’ve also been more difficult to source, he says.
Wilson also suggests doing a “thorough scrub of the total cost of ownership” through each possible channel—direct, broker/merchant, and printer.
While companies like Time Inc. and Conde Nast mostly source their own paper, smaller publishers usually rely on printers. For some, this model is disconcerting.
“We believe the printer marks up the price substantially,” says Robert Siel, production director at Sumner Communications. “So far, our strategy has been simply to pressure the printer to provide the best quality product for the lowest price.” His company is looking into buying its own paper but isn’t sure it can beat the printer’s rates.
Also, “If we buy the paper ourselves, someone—probably me—will have to invest a lot of time calculating, purchasing and scheduling the paper supply from the mills to the print facilities,” says Siel. “This means I may need another headcount.”
Printing, writing paper stocks have tumbled
By Tom Stundza – Purchasing Magazine
North American mill inventories of printing and writing paper plunged to 1.8 million net tons at the end of March, a 19.3% drop compared with a year ago, the Pulp and Paper Products Council reports. Also, demand for these papers dropped 1.3% to 6.48 million tons. Also reflecting the weak demand is the fact that mills operated at 94% of capacity in March to make 2.04 million tons, down 6.5% compared with March 2007.
Uncoated free sheet, the basic office white paper stock, remains the weakest North American market for printing and writing papers. A review of the statistics shows that first-quarter demand of uncoated free sheet dropped by almost 4% to 2.88 million net tons, paced by a 10% drop in March shipments.
North American mill inventories of printing and writing paper plunged to 1.8 million net tons at the end of March, a 19.3% drop compared with a year ago, the Pulp and Paper Products Council reports. Also, demand for these papers dropped 1.3% to 6.48 million tons. Also reflecting the weak demand is the fact that mills operated at 94% of capacity in March to make 2.04 million tons, down 6.5% compared with March 2007.
Uncoated free sheet, the basic office white paper stock, remains the weakest North American market for printing and writing papers. A review of the statistics shows that first-quarter demand of uncoated free sheet dropped by almost 4% to 2.88 million net tons, paced by a 10% drop in March shipments.
Monday, May 05, 2008
Paper Recycling Hits Record High
In 2007, an all-time high of 56 percent of the paper consumed in America was recovered for recycling, achieving a significant industry goal five years ahead of schedule. The American Forest & Paper Association (AF&PA) also set a new goal of 60 percent recovery by 2012.
"Industry is demonstrating a real commitment to environmental sustainability by continuing to set and achieve aggressive paper recovery goals," said AF&PA President and CEO Donna Harman. "Whether at home, school, or work, paper recovery is something we can all do to make a difference."
"While the upward trend in recovery rates is most encouraging, getting to 60 percent is an important challenge for all of us. Everyone has a role to play in our effort to sustain and grow the country's recycling programs and recover more paper," continued Patrick J. Moore, chairman and CEO, Smurfit-Stone Container Corporation. Smurfit-Stone is a longstanding AF&PA member and is one of the world's largest paper recyclers. The company collected more than 7 million tons of recyclable material in 2007.
The 54.3 million tons of paper recovered in 2007 add up to more than 360 pounds for every man, woman, and child in America. Each percentage point is the equivalent of approximately one million additional tons of recovered paper -- enough to fill more than 14,000 railroad cars.
Joining the announcement at the industry's 131st Annual Paper Week conference, Maria Vickers, Deputy Director of the U.S. Environmental Protection Agency's Office of Solid Waste applauded the paper industry's achievements in increasing paper recycling, noting that "in 2007, the US recycled over 25 million tons more paper than was recycled in 1990. This increase in paper recycling reduced emissions by more than 97 million metric tons of carbon dioxide equivalent, comparable to the annual emissions of nearly 18 million cars." She also noted that EPA and AF&PA continue to work together on projects to stimulate paper recycling across the country.
Matthew McKenna, president and CEO of national nonprofit Keep America Beautiful, a partner of AF&PA on projects to promote paper recycling in schools, praised the Association and its members for their efforts. "True environmental progress, like what we celebrate today, comes when industries work together with communities, organizations, and dedicated individuals to make things happen." Paper.com recently created a store on its website that exclusively markets thousands of environmentally friendly papers.
SOURCE: American Forest & Paper Association
"Industry is demonstrating a real commitment to environmental sustainability by continuing to set and achieve aggressive paper recovery goals," said AF&PA President and CEO Donna Harman. "Whether at home, school, or work, paper recovery is something we can all do to make a difference."
"While the upward trend in recovery rates is most encouraging, getting to 60 percent is an important challenge for all of us. Everyone has a role to play in our effort to sustain and grow the country's recycling programs and recover more paper," continued Patrick J. Moore, chairman and CEO, Smurfit-Stone Container Corporation. Smurfit-Stone is a longstanding AF&PA member and is one of the world's largest paper recyclers. The company collected more than 7 million tons of recyclable material in 2007.
The 54.3 million tons of paper recovered in 2007 add up to more than 360 pounds for every man, woman, and child in America. Each percentage point is the equivalent of approximately one million additional tons of recovered paper -- enough to fill more than 14,000 railroad cars.
Joining the announcement at the industry's 131st Annual Paper Week conference, Maria Vickers, Deputy Director of the U.S. Environmental Protection Agency's Office of Solid Waste applauded the paper industry's achievements in increasing paper recycling, noting that "in 2007, the US recycled over 25 million tons more paper than was recycled in 1990. This increase in paper recycling reduced emissions by more than 97 million metric tons of carbon dioxide equivalent, comparable to the annual emissions of nearly 18 million cars." She also noted that EPA and AF&PA continue to work together on projects to stimulate paper recycling across the country.
Matthew McKenna, president and CEO of national nonprofit Keep America Beautiful, a partner of AF&PA on projects to promote paper recycling in schools, praised the Association and its members for their efforts. "True environmental progress, like what we celebrate today, comes when industries work together with communities, organizations, and dedicated individuals to make things happen." Paper.com recently created a store on its website that exclusively markets thousands of environmentally friendly papers.
SOURCE: American Forest & Paper Association
SMART Papers Completes Acquisition Of Domtar's Premium FSC-Certified Writing, Text And Cover Brands
We reported on the progress of Smart's acquisition, on April 29th, the purchase was completed-
Hamilton, OH - Premium North American papermaker SMART Papers recently announced that it has completed the acquisition of seven well-known Forest Stewardship Council-certified brands of premium writing, text and cover and cotton stationery brands from Montreal-based Domtar Corporation.
The brands acquired are Feltweave, Nekoosa Linen, Nekoosa 25% Cotton, Nekoosa Bond, Skytone, Solutions and Proterra.
SMART Papers sales, marketing, customer service representatives, manufacturing and warehousing will serve all Domtar premium uncoated customers from SMART Papers' centrally located U.S. headquarters and warehouse in Hamilton, Ohio.
"We believe our customers will strongly benefit from the addition of these well-respected brands to our family of environmentally preferable and recycled uncoated and coated products," said Tim Needham, Chairman of SMART Papers. "These brands perfectly complement our strategy as the market leader for premium environmentally sustainable, best-value, text, writing, cover and cotton writing brands."
"Our newest FSC-branded papers are a good match for our manufacturing technology, our mill capacity, and our North American distribution strategy," added Dan Maheu, President and COO of SMART Papers. "They build on our focus to provide entire FSC-certified product lines to our customers."
Maheu said that SMART Papers will provide first-tier support to all of its existing and new customers. Products will be distributed from the Hamilton manufacturing center and our distribution center in Southern California.
"We planned this acquisition carefully," said Maheu. "We have started manufacturing the brands and anticipate a smooth transition for our new customers."
He added that the acquisition "is a strong complement to our premium coated paper brands—the world standard in triple-cast-coated papers, Kromekote, and our popular Knightkote Matte brand."
Paper.com is the largest source for online papers and markets all the Smart grades including the new Domtar line.
SOURCE: SMART Papers
Hamilton, OH - Premium North American papermaker SMART Papers recently announced that it has completed the acquisition of seven well-known Forest Stewardship Council-certified brands of premium writing, text and cover and cotton stationery brands from Montreal-based Domtar Corporation.
The brands acquired are Feltweave, Nekoosa Linen, Nekoosa 25% Cotton, Nekoosa Bond, Skytone, Solutions and Proterra.
SMART Papers sales, marketing, customer service representatives, manufacturing and warehousing will serve all Domtar premium uncoated customers from SMART Papers' centrally located U.S. headquarters and warehouse in Hamilton, Ohio.
"We believe our customers will strongly benefit from the addition of these well-respected brands to our family of environmentally preferable and recycled uncoated and coated products," said Tim Needham, Chairman of SMART Papers. "These brands perfectly complement our strategy as the market leader for premium environmentally sustainable, best-value, text, writing, cover and cotton writing brands."
"Our newest FSC-branded papers are a good match for our manufacturing technology, our mill capacity, and our North American distribution strategy," added Dan Maheu, President and COO of SMART Papers. "They build on our focus to provide entire FSC-certified product lines to our customers."
Maheu said that SMART Papers will provide first-tier support to all of its existing and new customers. Products will be distributed from the Hamilton manufacturing center and our distribution center in Southern California.
"We planned this acquisition carefully," said Maheu. "We have started manufacturing the brands and anticipate a smooth transition for our new customers."
He added that the acquisition "is a strong complement to our premium coated paper brands—the world standard in triple-cast-coated papers, Kromekote, and our popular Knightkote Matte brand."
Paper.com is the largest source for online papers and markets all the Smart grades including the new Domtar line.
SOURCE: SMART Papers
International Paper Mill Explosion
An explosion occurred at International Paper Company's Vicksburg, MA containerboard mill. The explosion happened when the mill was restarting a recovery boiler. The mill produced 560,000 tons/year of linerboard and will be down for minimum of 2 weeks. This capacity represents 10% of IP's total production and 2% of USA linerboard supply. This product is used for making boxes.
Monday, April 28, 2008
Smart reintroduces Passport Grade
Smart Papers has recently upgraded and added four new colors to its Passport line, which now boosts 30% post consumer recycled fiber. The full product line, now offered by Paper.com LLC include 14 colors in both smooth and felt finishes. The Paper.com web site markets the complete line, ready for immediate shipment.
North American Printing / Writing Statistics
From PaperAge
Uncoated Free sheet
2007 shipments 11,665 million tons (down 4.4% 2006)
Imports 543 million tons
Demand 11,757 million tons (down 5.5% 2006)
Total Printing and Writing Papers
2007 shipments 27,379 million tons (down 0.8% 2006)
Imports 3,298 million tons
Demand 29,457 million tons (down 3.0% 2006)
Uncoated Free sheet
2007 shipments 11,665 million tons (down 4.4% 2006)
Imports 543 million tons
Demand 11,757 million tons (down 5.5% 2006)
Total Printing and Writing Papers
2007 shipments 27,379 million tons (down 0.8% 2006)
Imports 3,298 million tons
Demand 29,457 million tons (down 3.0% 2006)
North American Uncoated Market Capacity Shrinks
Producers of Uncoated Wood Free papers have curtailed over 2million tons of capacity since January 2007. We look for additional shuttering of equipment and increased paper prices during 2008. Two price increase announcements have already occurred in first 4 months of 2008. We have noted a steady decrease in demand, and 2006 to 2007 illustrated this with a 5.5% decrease. While the uncoated capacity decreased to 13million tons, the entire Printing and Writing market also witnessed a decline to 32.5million tons (3% decrease). The reduction started in the late 1990s. Today, this reduction is greatly assisted by the substitution of electronic communication and continuous increase in postal rates. Those mills that must buy fiber (pulp) because they are not integrated were the most inefficient, and therefore the first to shut down. Many mills suffer with inability to increase pricing enough to cover the advancement of costs such as fiber, chemicals, energy, labor, and shipping.
Uncoated Freesheet Pricing
Uncoated free sheet prices continued to rise in April, this after the $60/ton price hike initiatives announced for March are all in place.
Business Papers, (copy papers) prices rose $50/ton in March and
another $10/tons announced for April. Offset roll prices rose $30/ton in March and another $20 in April. At the same time, demand appears to be
easing.
Business Papers, (copy papers) prices rose $50/ton in March and
another $10/tons announced for April. Offset roll prices rose $30/ton in March and another $20 in April. At the same time, demand appears to be
easing.
Demand for Printing Papers
While the North American market is witnessing decreased demand, emerging markets such as Brazil, Russia, India and China are enjoying increased demand. These countries have both a rising population as well as increased household incomes. As the North American manufactures’ consolidate and introduce the rationalization of assets these other countries are building new paper machines.
Worldwide, we see global demand increasing, at a decreasing rate; more color, less monochrome desk top printing; Offset printing will decrease and digital (variable) printing will increase; and, Direct mail will increase at a decreasing rate.
Our prediction is North America will look for more personalized, better quality printing. Color copiers and color laser printers as well as digital presses will become more popular.
Paper.com, a leading web based marketer of paper, has focused on high quality laser papers as well as digital papers to service this growth. The site firmly believes the future is in personalized marketing communications in color. They also offer most of the grades in an environmentally friendly version.
Worldwide, we see global demand increasing, at a decreasing rate; more color, less monochrome desk top printing; Offset printing will decrease and digital (variable) printing will increase; and, Direct mail will increase at a decreasing rate.
Our prediction is North America will look for more personalized, better quality printing. Color copiers and color laser printers as well as digital presses will become more popular.
Paper.com, a leading web based marketer of paper, has focused on high quality laser papers as well as digital papers to service this growth. The site firmly believes the future is in personalized marketing communications in color. They also offer most of the grades in an environmentally friendly version.
N.A. Printing/Writing Paper Inventories Decline
Total North American printing and writing paper mill inventories plunged -19.3% to 2.0 million tons in March compared to 2.5 million tons in March 2007, the Pulp and Paper Products Council reported. Shipments and demand for total printing and writing papers were down -4.9% and -4.7% respectively. North American mills operated at 94% (shipments-to-capacity) compared to 92% in the year-ago period. Total production dropped 6.5% to 2.25 million tonnes.
Imported Lightweight Thermal Papers may see New Duty
Recently, the US Department of Commerce announced its preliminary decision to apply a duty ranging from 5.7% to nearly 60% to certain Chinese and German producers. The study, introduced by Appleton Papers, outlines subsidies to producers of lightweight thermal papers. These are papers used for such items as gas and grocery store receipts, sometimes known as point of purchase sales receipts. Final determination will be announced later this summer.
Newsprint Pricing
April prices for 30-lb ‘standard’ newsprint raised $20/ton to $660/tons, this after,
4 of 6 consecutive $20/ton price advances were all implemented. Implementation of the last 2
installments would take prices to $700/ton by June. Further price moves may be ahead.
4 of 6 consecutive $20/ton price advances were all implemented. Implementation of the last 2
installments would take prices to $700/ton by June. Further price moves may be ahead.
Wednesday, April 23, 2008
Oji Starts US$1.95 Billion Paper Project in China
Japan’s Oji Paper Group has begun construction on a $1.95 billon paper project in Nantong, east China’s Jiangsu Province, after five years of preparation. A joint venture company named Jiangsu Oji Paper Co Ltd was set up last year, with Oji accounting for 90% of the investment and the Nantong Corporation the remainder. The first phase of the project is scheduled for 2010 with a 400,000 tonne/yr woodfree paper machine. The startup of the mill’s second 400,000 tonne/yr fine paper machine was pushed back to 2015 from 2012.
Rising Raw Materials for Paper producers
Rising raw material costs continue to reduce paper industry margins. Domtar issued a release today warning of $35-45MM in incremental raw material costs for the corporation. Energy, fiber, chemicals and transportation costs are all on the increase. The first quarter for 2008 increase comes on top of $21MM in additional raw material costs in forth quarter of 2007. Look for more paper price increases from manufactures, just to stay whole!! Domtar, International Paper, and Boise – the 3 big producers, are already preparing end users for an announcement. Companies, such as Paper.com - the largest web based marketer of paper, often are forced to pass these price increases along. The low margins in the paper industry just does not allow for the site to absorb the new price advancements.
Hardwood pulp prices creep higher
By Tom Stundza – Purchasing Magazine
Several hardwood pulp producers had trouble getting paper mills to accept all of a $30/metric ton price increase this month, but will continue pushing buyers in May. The purchasingdata.com survey of buyers matches data in the Pulp and Paper Week newsletter that northern bleached hardwood kraft pulp cost an average $810/metric ton in April, up just $5 from March. AbitibiBowater, Alberta-Pacific and Marubeni Pulp & Paper North had sought $835.
Several hardwood pulp producers had trouble getting paper mills to accept all of a $30/metric ton price increase this month, but will continue pushing buyers in May. The purchasingdata.com survey of buyers matches data in the Pulp and Paper Week newsletter that northern bleached hardwood kraft pulp cost an average $810/metric ton in April, up just $5 from March. AbitibiBowater, Alberta-Pacific and Marubeni Pulp & Paper North had sought $835.
COATED GROUNDWOOD MARKET UPDATE
Prices have been announced to increase $60 - 75/ton in April on most coated publication grades.
The industry witnessed shipments rose over 10% so far this year illustrating strong conditions. However, current market demand illustrates more tonnage available because of high paper prices and a slower economy as well as announced reductions in some cataloguing budgets.
The industry witnessed shipments rose over 10% so far this year illustrating strong conditions. However, current market demand illustrates more tonnage available because of high paper prices and a slower economy as well as announced reductions in some cataloguing budgets.
Newsprint Demand continues to decline at a brisk pace
Consumption of paper at the U.S. dailies for the first two months of 2008 fell 11.6% . Part of the issue is that newspaper widths continue to drop, with 44" widths now becoming common. However, a bright spot is that the 7.2% decline in total U.S. consumption for the first two months is noticeably less than the double digit declines seen in the first half of 2007. Also, overseas exports showed strong growth in the first two months of 2008 – up 25.1%.
Domtar Selling Paper Line to SMART Papers
Domtar Corp. is selling its text, cover and writing product line of papers to SMART Papers of Hamilton, OH, an independent manufacturer and marketer of premium cast-coated, matte-coated and uncoated printing papers. Closing is scheduled for April 21. Domtar grades designated by the agreement are Solutions, Feltweave, Nekoosa Linen, Nekoosa Bond, Nekoosa 25% Cotton, Proterra and Skytone. Paper.com will market all these new Smart Paper products.
PAPER OR PLASTIC?
From New York Times Magazine April 20, 2008 by CLAY RISEN
It sounds like a big step forward in environmental awareness — Whole Foods, the eco-friendly grocery chain, will ban conventional plastic shopping bags in its 270 stores. San Francisco has banned them in some places; so have Uganda and Bangladesh. But paper bags, it turns out, are hardly an ideal replacement. To ensure sturdier bags, most producers use primarily new paper, which means cutting down more trees. Then chemicals are used in the production of the bags to give them strength. According to a study by Franklin Associates, a consulting firm, plastic bags require significantly less energy than paper over the course of their life cycle, from manufacturing to transportation. Indeed, because paper bags are seven times bulkier, on average, than plastic bags, it takes a lot more energy to transport paper bags to grocery stores. Bulk matters on the other end too: paper bags take up nine times as much room in landfills, and recycling plastic uses 91 percent less energy than recycling paper. Which isn’t to say that Whole Foods has it wrong about plastic bags. Most are made from a nonrenewable resource, petroleum, and contain their own mix of toxic chemicals. They may be more energy-efficient with recycling, but only about 1 to 3 percent of plastic bags are recycled, compared with about 10 to 15 percent of paper bags. And millions of the 100 billion bags Americans throw away each year end up as litter, clogging storm drains and choking sea animals. A third way may be the only good choice. As part of its ban on regular plastic bags, for instance, San Francisco is encouraging stores to switch to cornstarch-derived plastic bags, which break down in about a month and release no harmful chemicals. And many stores have started to encourage shoppers to bring reusable cloth bags, or to offer them for sale at a cheap price.
Paper.com recently introduced a Green Store on site that carries all the popular 'earth friendly' paper grades.
It sounds like a big step forward in environmental awareness — Whole Foods, the eco-friendly grocery chain, will ban conventional plastic shopping bags in its 270 stores. San Francisco has banned them in some places; so have Uganda and Bangladesh. But paper bags, it turns out, are hardly an ideal replacement. To ensure sturdier bags, most producers use primarily new paper, which means cutting down more trees. Then chemicals are used in the production of the bags to give them strength. According to a study by Franklin Associates, a consulting firm, plastic bags require significantly less energy than paper over the course of their life cycle, from manufacturing to transportation. Indeed, because paper bags are seven times bulkier, on average, than plastic bags, it takes a lot more energy to transport paper bags to grocery stores. Bulk matters on the other end too: paper bags take up nine times as much room in landfills, and recycling plastic uses 91 percent less energy than recycling paper. Which isn’t to say that Whole Foods has it wrong about plastic bags. Most are made from a nonrenewable resource, petroleum, and contain their own mix of toxic chemicals. They may be more energy-efficient with recycling, but only about 1 to 3 percent of plastic bags are recycled, compared with about 10 to 15 percent of paper bags. And millions of the 100 billion bags Americans throw away each year end up as litter, clogging storm drains and choking sea animals. A third way may be the only good choice. As part of its ban on regular plastic bags, for instance, San Francisco is encouraging stores to switch to cornstarch-derived plastic bags, which break down in about a month and release no harmful chemicals. And many stores have started to encourage shoppers to bring reusable cloth bags, or to offer them for sale at a cheap price.
Paper.com recently introduced a Green Store on site that carries all the popular 'earth friendly' paper grades.
SMART Papers Modernizes Synergy Writing, Text And Cover Brand With New Colors, 100% PCW Fibers And FSC-Certified Papers
SMART Papers has modernized and expanded its high-value, premium uncoated Synergy writing, text and cover brand with four new fashionable colors and new heavyweight papers. Selected papers feature 100% post-consumer fiber and Forest Stewardship Council certification.
Synergy is the fifth major brand improvement by SMART Papers in the last year, underscoring the U.S. premium papermaker’s expanded commitment to designers and printers who specify writing, text and cover papers. The company’s other brand upgrades are Genesis, Pegasus, Carnival and Passport.
SMART Papers is the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers. Synergy, with hundreds of options combining colors, textures, weights and sizes, is one of the company’s many high-quality uncoated brands. It provides graphics professionals a contemporary color palette, distinctive finishes, cotton sheets and environmentally responsible options.
sheet. Weights range from 24-pound writing, 70- to 100-pound text and 80-pound cover to 130-pound double thick cover.
Synergy is also meeting growing demand for environmentally responsible papers with a 92-bright White and elegant Natural, which are 100% PCW and FSC certified. These colors are available in seven basis weights, including two new cover weights and multiple sheet sizes. The remaining Synergy colors are manufactured with 30% PCW or 25% cotton fiber.
Synergy’s four new fashionable colors include the rich earth tones of Squash, Toffee and Sienna, as well as the cool, pale-blue Wisteria. The majority of the 16 colors, from 95-bright Pure White to Serious Black, are available in Smooth and Felt finishes. The new Squash and Toffee also are available in Linen.
Synergy’s elegant 25% cotton sheet is available in three colors, two basis weights and Smooth and Light Cockle finishes. The cotton sheets feature a random watermark with the universal recycled symbol.
The Smooth and Laid text finishes and 25% cotton sheets are guaranteed to run on copiers, laser and inkjet printers. All sheets are acid free and archival, process chlorine-free and elemental chlorine-free.
Selected Synergy cover stocks are certified for use on HP Indigo presses and available through the recently announced i-Xpress for HP Indigo Paper Program. The HP Indigo-compatible sheets are available for shipment within eight business days from date of order. Minimum order is two cartons.
Synergy applications include annual reports, invitations, stationery, brochures, packaging, craft and hobby, greeting cards, business cards, pocket folders and hang tags. Envelopes are also available.
Paper.com has all the Smart Paper items, in stock and ready for immediate shipment.
SOURCE: SMART Papers
Synergy is the fifth major brand improvement by SMART Papers in the last year, underscoring the U.S. premium papermaker’s expanded commitment to designers and printers who specify writing, text and cover papers. The company’s other brand upgrades are Genesis, Pegasus, Carnival and Passport.
SMART Papers is the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers. Synergy, with hundreds of options combining colors, textures, weights and sizes, is one of the company’s many high-quality uncoated brands. It provides graphics professionals a contemporary color palette, distinctive finishes, cotton sheets and environmentally responsible options.
sheet. Weights range from 24-pound writing, 70- to 100-pound text and 80-pound cover to 130-pound double thick cover.
Synergy is also meeting growing demand for environmentally responsible papers with a 92-bright White and elegant Natural, which are 100% PCW and FSC certified. These colors are available in seven basis weights, including two new cover weights and multiple sheet sizes. The remaining Synergy colors are manufactured with 30% PCW or 25% cotton fiber.
Synergy’s four new fashionable colors include the rich earth tones of Squash, Toffee and Sienna, as well as the cool, pale-blue Wisteria. The majority of the 16 colors, from 95-bright Pure White to Serious Black, are available in Smooth and Felt finishes. The new Squash and Toffee also are available in Linen.
Synergy’s elegant 25% cotton sheet is available in three colors, two basis weights and Smooth and Light Cockle finishes. The cotton sheets feature a random watermark with the universal recycled symbol.
The Smooth and Laid text finishes and 25% cotton sheets are guaranteed to run on copiers, laser and inkjet printers. All sheets are acid free and archival, process chlorine-free and elemental chlorine-free.
Selected Synergy cover stocks are certified for use on HP Indigo presses and available through the recently announced i-Xpress for HP Indigo Paper Program. The HP Indigo-compatible sheets are available for shipment within eight business days from date of order. Minimum order is two cartons.
Synergy applications include annual reports, invitations, stationery, brochures, packaging, craft and hobby, greeting cards, business cards, pocket folders and hang tags. Envelopes are also available.
Paper.com has all the Smart Paper items, in stock and ready for immediate shipment.
SOURCE: SMART Papers
South American Paper Industry
Report form Deutche bank after visit to Latin and South America
No signs of a looming surge in South American white paper exports.
There are only 2 major Latin uncoated white paper producers:
International Paper and Suzano.
Both are focused on producing for the local (Brazil) and regional (South America) markets. All other Latin players are focused on expanding market pulp capacity for exports. A constant message was, "produce pulp in low-cost locations, produce paper close to the customer."
The falling US$ has been "good news/bad news" for many Latin companies.
The bad news? Most firms produce US$-denominated commodities, typically with most costs in local currencies. Thus, as the Brazilian and Chilean currencies have appreciated, production costs have risen in US$ terms. The good news? The Latin producers still enjoy among the lowest costs in the world. At the same time, rising currencies and other issues are forcing high-cost producers in Canada & Europe to shutter capacity. This is resulting in higher-than-expected prices.
No signs of a looming surge in South American white paper exports.
There are only 2 major Latin uncoated white paper producers:
International Paper and Suzano.
Both are focused on producing for the local (Brazil) and regional (South America) markets. All other Latin players are focused on expanding market pulp capacity for exports. A constant message was, "produce pulp in low-cost locations, produce paper close to the customer."
The falling US$ has been "good news/bad news" for many Latin companies.
The bad news? Most firms produce US$-denominated commodities, typically with most costs in local currencies. Thus, as the Brazilian and Chilean currencies have appreciated, production costs have risen in US$ terms. The good news? The Latin producers still enjoy among the lowest costs in the world. At the same time, rising currencies and other issues are forcing high-cost producers in Canada & Europe to shutter capacity. This is resulting in higher-than-expected prices.
Smart Labels
Today's smart labels come in many forms and functions, not just RFID.
by Leah Genuario
Smart label sales are expected to double from the 2006 estimate of 5,000 million units to 10,000 million units by 2011, according to Labels, a study published in December 2007 by The Freedonia Group. The study defines smart labels as devices capable of incorporating data and manufactured with read/write capabilities. It places emphasis on RFID labels, stating that the technology “promises to revolutionize applications from supply chain and inventory management to health care, libraries and air travel.” In addition, “dramatic gains are thus expected, both in extant and emerging uses.”
by Leah Genuario
Smart label sales are expected to double from the 2006 estimate of 5,000 million units to 10,000 million units by 2011, according to Labels, a study published in December 2007 by The Freedonia Group. The study defines smart labels as devices capable of incorporating data and manufactured with read/write capabilities. It places emphasis on RFID labels, stating that the technology “promises to revolutionize applications from supply chain and inventory management to health care, libraries and air travel.” In addition, “dramatic gains are thus expected, both in extant and emerging uses.”
Quebecor World Signs Contracts
Quebecor World continues to operate under bankruptcy protection, and it will likely remember those entities who continued to support the printer. . .as well as those who turned their backs on the venerable printer.
That turnaround faces a treacherous road, for now. Quebecor World has opted to close its Maggot, Quebec facility. The plant produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
They received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Companies extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform. Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland. The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.
However, its own parent, Quebecor Inc., may switch to another printer to handle some of its magazine titles. Publications TVA, Quebec’s largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications, says a Quebecor spokesman. The spokesman cited “practical and logistical reasons” being mulled. No decision has been made, and the vast majority of TVA publications will continue to be printed by Quebecor World.
That turnaround faces a treacherous road, for now. Quebecor World has opted to close its Maggot, Quebec facility. The plant produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
They received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Companies extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform. Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland. The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.
However, its own parent, Quebecor Inc., may switch to another printer to handle some of its magazine titles. Publications TVA, Quebec’s largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications, says a Quebecor spokesman. The spokesman cited “practical and logistical reasons” being mulled. No decision has been made, and the vast majority of TVA publications will continue to be printed by Quebecor World.
Thursday, April 03, 2008
U.S. Forest Service Survey Reveals Positive Impacts
The most recent United States Department of Agriculture (USDA)
Forest Service data confirms that United States forestland is roughly as abundant today as it was 100 years ago. The Forest Service’s Resource Planning Act 2007 (RPA) data reveals both state and regional increases in forestland across the country.
Key findings in the report -
There are 750 million acres of forestland in the U.S. today, about the same as in 1907.
11 states had increases of more than 25 percent over the last century, nine had increases of in excess of 30 percent.
Overall, forestland in the northern U.S. has increased by nearly 30 percent.
Forest Service data confirms that United States forestland is roughly as abundant today as it was 100 years ago. The Forest Service’s Resource Planning Act 2007 (RPA) data reveals both state and regional increases in forestland across the country.
Key findings in the report -
There are 750 million acres of forestland in the U.S. today, about the same as in 1907.
11 states had increases of more than 25 percent over the last century, nine had increases of in excess of 30 percent.
Overall, forestland in the northern U.S. has increased by nearly 30 percent.
Pulp Mills Boost Prices ….. Again
Pulp producers are informing customers it will increase northern bleached hardwood Kraft (NBHK) pulp prices by $30 per ton, reports RISI, the forest products news service. New list price on NBHK would rise to $835/metric ton in North America. NBSK prices remained flat in March at $880/mton. At $900/mton, fluff prices are now up $170/mton over the last 18 months. As pulp costs increase, paper prices will also advance
Coated FreeSheet market Update
Coated Freesheet are those papers used for higher end publications. These grades are generally chosen for their brightness and gloss characteristics. The top producers in USA include (Mill / capacity 000 / Market Share%)
NewPage / 2,235 / 40%
SAPPI / 1,390 / 25%
Verso / 595 / 10.5%
Appleton / 315 / 5.5%
Tembec / 310 / 5.5%
This market continues to be very tight. The producers have consolidated and rationalized assets with shuttering equipment to generate operating rates of 98%. Demand is actually down nearly 6%.
NewPage / 2,235 / 40%
SAPPI / 1,390 / 25%
Verso / 595 / 10.5%
Appleton / 315 / 5.5%
Tembec / 310 / 5.5%
This market continues to be very tight. The producers have consolidated and rationalized assets with shuttering equipment to generate operating rates of 98%. Demand is actually down nearly 6%.
Marcal Paper Mill Purchased by Fund
The bankruptcy court approved a $160million purchase price for Highland Capital to purchase Marcel Paper Company.
Staples ends Relationship with Asia Pulp and Paper
After many years of importing ‘economical’ copy paper from Asia Pulp and Paper, Staples announced it would not longer purchase product from this source. This accounted for nearly 10% of the the paper Staples used for their private “red box’ brand. The company was pressured to stop supporting this vendor because of the lack of adherence to environmental mandates.
Fraser curtails two Paper Machines
Fraser will indefinitely curtail production on two paper machines (#13 and #14) at the Groveton, NH mill on April 13th. These two are in addition to the #12 machine shut down in late 2007. Fraser’s management sited poor economics.
Printing Sales up in 2007
PIA/GATF reported on their survey results for forth quarter of 2007 that printer sales increased 2.35%. The survey confirmed that larger printers grew faster than printers with fewer than 50 employees. Printers continued to site energy as the #1 cost increase for 2007 (followed by employee benefits and paper costs).
UNCOATED FREE SHEET Market Update
Demand for uncoated, business papers, increased slightly so far this year. A substantial portion of the $60/ton price hike initiatives on Uncoated free sheet grades were implemented in March. Business paper prices rose $50/ton, while Offset roll prices rose $30/ton.
COATED GROUNDWOOD Market Update
Publication paper prices remained flat in March, but producers have announced a $60/ton price increase for early April. Due to tight markets, NewPage announced it would delay closing its Niagara, WI, mill, with 215,000 tons of capacity, until the Fall. Production costs on components such as pulp, energy, chemicals, and shipping costs continue to increase.
White Birch Purchases SP Newsprint
We reported that White Birch and SP Newsprint were in discussions on an acquisition; White Birch just announced $350million purchase of SP Newsprint.
Linerboard price hike flops
By Tom Stundza – Purchasing Magazine
North American $50/ton containerboard price increase has failed to stick in March because of deteriorating demand for boxes, according to RISI, the forest products news service. All seven major containerboard mills had fallen in line with the price hike but this month’s buyer surveys by Purchasingdata.com confirm that the market price average for 42-lb Kraft linerboard remains at $555.
RISI says there has been strong resistance from independent box converters, who believe they would be unable pass through any increase in finished box prices. Some linerboard producers may try again in April or May--although weak box demand and growing containerboard inventories in a worsening U.S. economy could make that difficult, says analyst Ross Gilardi at Merrill Lynch & Co. He says he expects box demand to remain weak for some weeks, “which could make it challenging for box producers to pass a price increase through to customers.”
North American $50/ton containerboard price increase has failed to stick in March because of deteriorating demand for boxes, according to RISI, the forest products news service. All seven major containerboard mills had fallen in line with the price hike but this month’s buyer surveys by Purchasingdata.com confirm that the market price average for 42-lb Kraft linerboard remains at $555.
RISI says there has been strong resistance from independent box converters, who believe they would be unable pass through any increase in finished box prices. Some linerboard producers may try again in April or May--although weak box demand and growing containerboard inventories in a worsening U.S. economy could make that difficult, says analyst Ross Gilardi at Merrill Lynch & Co. He says he expects box demand to remain weak for some weeks, “which could make it challenging for box producers to pass a price increase through to customers.”
Thursday, March 20, 2008
The Push for a Greener Industry
Publishing Executive News
When the mayor of New York, a high-ranking city commissioner and other Big Apple bigwigs gather at the Empire State Building for a press conference, you can usually expect the announcement of some big public works project, such as a new skyscraper. What brought these dignitaries together, however, was a different sort of public works: a campaign to encourage recycling among the city’s 8 million residents, led by a $3 million advertising blitz that will put
posters on buses and subways, as well as commercials in movie theaters and on Time Warner cable channels.
Paper.com introduced a Green store last year http://paper.com/department/green/ with thousands of environmentally friendly products to support citizens that seek sustainable forest initiatives.
When the mayor of New York, a high-ranking city commissioner and other Big Apple bigwigs gather at the Empire State Building for a press conference, you can usually expect the announcement of some big public works project, such as a new skyscraper. What brought these dignitaries together, however, was a different sort of public works: a campaign to encourage recycling among the city’s 8 million residents, led by a $3 million advertising blitz that will put
posters on buses and subways, as well as commercials in movie theaters and on Time Warner cable channels.
Paper.com introduced a Green store last year http://paper.com/department/green/ with thousands of environmentally friendly products to support citizens that seek sustainable forest initiatives.
Uncoated Free Sheet Update
Uncoated white paper prices continue to push upward - trade sources suggest that overall price levels are up $40-60/ton since beginning of year. The cut-size (desktop and copier papers) market remains the strongest. Domtar, International Paper, Georgia Pacific and others are out with a $60/ton March price hike on 50-lb offset rolls, with other Uncoated Free Sheet grades set to follow. The increase comes shortly after many producers announced a $60/ton
increase on cut-size paper for February.
Paper.com still has products available on site that have not been increased, subject to availability.
increase on cut-size paper for February.
Paper.com still has products available on site that have not been increased, subject to availability.
The declining North American UFS market – causes and future trends
By John Maine, Vice President, World Graphic Papers, RISI
The North American uncoated freesheet market used to be a high growth market. It consistently outpaced the growth in the economy by 1-2% per year as business copiers, home printers, faxes and a myriad of other end-uses expanded rapidly, fueled by technological development and plummeting prices for business machines.
This trend ended abruptly in 1999. Almost overnight, the uncoated freesheet market morphed from a profitable high-growth business, to one that has been plagued by declining demand and lackluster profitability. It took the industry years to recognize the change in trend, and chronic oversupply dampened profitability in the market.
What Caused the Market to Decline?
There were two broad factors that led to the decline in the market:
1. The loss of print markets to electronics
2. The loss of market share to alternative grades of paper
When discussing the decline in the uncoated freesheet market, most people refer to the primary cause as the shift to electronic technology.
This was indeed the primary driver behind the declines in demand for tablet, envelope, stationery, carbonless paper, technical papers and form bond.
However, a very important and often overlooked fact is that a third of the market share loss since 1999 was caused by a shift to alternative grades of paper. The introduction and successful growth of uncoated mechanical offset substitutes in particular has displaced about 840,000 tons of uncoated freesheet demand in North America since 1999. Furthermore, the rapid growth of cheap, mostly Asian, coated sheets has also displaced about 250,000 tons of uncoated freesheet sheets, mostly in the “cover, text and bristol” category.
The North American uncoated freesheet market used to be a high growth market. It consistently outpaced the growth in the economy by 1-2% per year as business copiers, home printers, faxes and a myriad of other end-uses expanded rapidly, fueled by technological development and plummeting prices for business machines.
This trend ended abruptly in 1999. Almost overnight, the uncoated freesheet market morphed from a profitable high-growth business, to one that has been plagued by declining demand and lackluster profitability. It took the industry years to recognize the change in trend, and chronic oversupply dampened profitability in the market.
What Caused the Market to Decline?
There were two broad factors that led to the decline in the market:
1. The loss of print markets to electronics
2. The loss of market share to alternative grades of paper
When discussing the decline in the uncoated freesheet market, most people refer to the primary cause as the shift to electronic technology.
This was indeed the primary driver behind the declines in demand for tablet, envelope, stationery, carbonless paper, technical papers and form bond.
However, a very important and often overlooked fact is that a third of the market share loss since 1999 was caused by a shift to alternative grades of paper. The introduction and successful growth of uncoated mechanical offset substitutes in particular has displaced about 840,000 tons of uncoated freesheet demand in North America since 1999. Furthermore, the rapid growth of cheap, mostly Asian, coated sheets has also displaced about 250,000 tons of uncoated freesheet sheets, mostly in the “cover, text and bristol” category.
Major Newspapers continue 4-Year Decline
In just four years the top newspapers in the U.S. have collectively lost about 1.4 million copies in daily circulation. But since the reported numbers come out every six months, the overall decline for individual papers may not hit home formany. Each fall off is usually in the low- to mid-single digits -- but it sure adds up. The industry has lost about 10% of circulation overall in the past
four years among the leading papers.
four years among the leading papers.
Hewlett Packard adds Inkjet Printer to Products
HP is the largest printer maker and has introduced a faster Indigo Press as well as
a wide format inkjet press.
The Indigo 7000prints 120 four-color pages a minute, while the inkjet press can print newspapers, books and signs.
The Indigo Press models have captured 49% of the entire digital press market share for high volume business. Xerox’s IGen has 36%, and Kodak’s NexPress enjoys 15%.
Paper.com has an entire section on site with all the major digital and inkjet paper grades.
a wide format inkjet press.
The Indigo 7000prints 120 four-color pages a minute, while the inkjet press can print newspapers, books and signs.
The Indigo Press models have captured 49% of the entire digital press market share for high volume business. Xerox’s IGen has 36%, and Kodak’s NexPress enjoys 15%.
Paper.com has an entire section on site with all the major digital and inkjet paper grades.
U.S. cotton prices are surging ahead
By Tom Stundza – Purchasing Magazine
U.S. cotton prices are rising this month, as global prices are the highest in a decade because world demand is exceeding supply for the second consecutive crop season. The Cotlook A Index of world cotton prices has averaged 70¢/lb so far in 2007-2008 .The price average is 11¢ higher than during the first seven months of the previous year.
As a result of the gap between world production and consumption, world cotton ending stocks are projected to decline this crop season by 9%, or 1.1 million tons, to 11.5 million tons. But some analysts say it could slide as low as 10.7 million tons, further boosting spring and summer prices.
What does this mean for Paper? All our premium 25-100% cotton grades are directly affected by this increase in cost for this fiber. Paper.com tries to maintain level prices, but when raw material costs escalate like this, it becomes nearly impossible
U.S. cotton prices are rising this month, as global prices are the highest in a decade because world demand is exceeding supply for the second consecutive crop season. The Cotlook A Index of world cotton prices has averaged 70¢/lb so far in 2007-2008 .The price average is 11¢ higher than during the first seven months of the previous year.
As a result of the gap between world production and consumption, world cotton ending stocks are projected to decline this crop season by 9%, or 1.1 million tons, to 11.5 million tons. But some analysts say it could slide as low as 10.7 million tons, further boosting spring and summer prices.
What does this mean for Paper? All our premium 25-100% cotton grades are directly affected by this increase in cost for this fiber. Paper.com tries to maintain level prices, but when raw material costs escalate like this, it becomes nearly impossible
Tuesday, March 04, 2008
Paper Mills close and Paper Demand decreases
We often report on the paper industry’s recent initiative of asset rationalization whereby mills are shuttering capacity or consolidating with other manufacturers. This trend is forecasted to continue into the foreseeable future. Recently, we outlined NewPage, Domtar and Fraser papers curtailing production equipment. StoraEnso consolidated its North American facilities with NewPage, as did Bowater with Abitibi. Internet is certainly taking a piece of printing demand and the higher cost of postage makes mailing
printed material more expensive. Even FSI (Free Standing Inserts – those promotions you get in the newspaper) have declined 5% from 2006. One expert commented that even Television advertising is no longer a leading influencer and loosing its effectiveness.
Most paper prices have increased; this certainly has not assisted with demand. One comment on all the sudden paper price increases is these advances have not kept up with the cost increases for such expenses as fiber, energy, shipping and chemicals. Look for more paper price increases and less paper consumed in 2008.
One industry expert stated that although demand for paper is decreasing approximately 2% a year, the producers are shuttering 6% of capacity each year.
printed material more expensive. Even FSI (Free Standing Inserts – those promotions you get in the newspaper) have declined 5% from 2006. One expert commented that even Television advertising is no longer a leading influencer and loosing its effectiveness.
Most paper prices have increased; this certainly has not assisted with demand. One comment on all the sudden paper price increases is these advances have not kept up with the cost increases for such expenses as fiber, energy, shipping and chemicals. Look for more paper price increases and less paper consumed in 2008.
One industry expert stated that although demand for paper is decreasing approximately 2% a year, the producers are shuttering 6% of capacity each year.
Paper Industry continues to see GREEN Initiatives
Simone and Schuster, a large trade book publisher, just announced a new paper policy that requires at least 10% of the papers they purchase must originate from FSC Certified forests by 2012. The policy also calls for increase in recycled content from 10% to 25%.
In another news related event, Domtar recently shipped a newly developed specialized lightweight bible paper that is FSC Certificated. RRDonnelley will publish the bible for publisher Thomas Nelson. This is the first FSC bible.
In another news related event, Domtar recently shipped a newly developed specialized lightweight bible paper that is FSC Certificated. RRDonnelley will publish the bible for publisher Thomas Nelson. This is the first FSC bible.
NewPage confirms Plans for mills
NewPage confirmed its plans for the new capacity acquired with the purchase of StoraEnso.
No11 Paper Machine – Rumford, ME will close permanently
No 43 and 44 and pulp mill in Niagara, WI will be closed permanently.
No 95 in Kimberly, WI will be permanently shut down
Converting mill in Chillicothe, OH will be shut down permanently
No11 Paper Machine – Rumford, ME will close permanently
No 43 and 44 and pulp mill in Niagara, WI will be closed permanently.
No 95 in Kimberly, WI will be permanently shut down
Converting mill in Chillicothe, OH will be shut down permanently
Heidelberg outlines Growth by Printing Process
Heidelberg outlined sales growth rates by Primary printing process as
Flexography 5.5%
Combo sheet-web 5%
Digital 3.8%
Sheetfed 1.7%
Coldset Web 1.3%
Heatset Web .12%
Flexography 5.5%
Combo sheet-web 5%
Digital 3.8%
Sheetfed 1.7%
Coldset Web 1.3%
Heatset Web .12%
Update on Coated Publication Groundwood Papers
The major publication producers such as Kruger, Myllykoski, Catalyst, AbitibiBowater and NewPage have announced a $60/ton LWC price increase for early April. UPM and Verso are
expected to follow. The current market is very tight, with backlogs of 10 to12 weeks.
We reported prices rose $30-60/ton in January. The price on 40# LWC have risen $190/ton between June of 2007 and January of 2008.
expected to follow. The current market is very tight, with backlogs of 10 to12 weeks.
We reported prices rose $30-60/ton in January. The price on 40# LWC have risen $190/ton between June of 2007 and January of 2008.
Thursday, February 28, 2008
US Pulp and Paper Industry Posts 4Q Results
Earnings for U.S. paper and forest companies fell 1.5% in the fourth quarter, compared to the year-ago quarter. The collective profit margin totaled 4.2%. It was the second consecutive quarter above 4% for the group of 21 publicly traded companies. Fourth quarter sales for the group increased 1.0%, driven by higher prices and increased volumes for most pulp and paper products.
RR Donnelley Fourth Quarter Loss Widens
R.R. Donnelley & Sons reported a fourth quarter net loss of $293.3 million, compared with a year-ago loss of $1.2 million. The results included pre-tax charges of $477.2 million. Quarterly net sales increased 25% to $3.09 billion, boosted by multiple acquisitions Donnelley made over the past year.
2007 Reduction in Uncoated Capacity
Mill Location tons
Inter’l Paper Pensacola, FL 350,000
Dirigo Gilman, VT 70,000
Georgia Pacific Wauna, OR 110,000
Boise Wallula,WA 135,000
Fraser Madawaska, ME 70,000
Domtar ME,WI,QC 240,000
Dryden, ON 315,000
Neenah Housatonic, MA 15,000
Urbana, OH 40,000
Wausau Groveton,NH 105,000
Valentine Lockport, LA 35,000
2007 total tonnage reduction 1,425,000 tons
Inter’l Paper Pensacola, FL 350,000
Dirigo Gilman, VT 70,000
Georgia Pacific Wauna, OR 110,000
Boise Wallula,WA 135,000
Fraser Madawaska, ME 70,000
Domtar ME,WI,QC 240,000
Dryden, ON 315,000
Neenah Housatonic, MA 15,000
Urbana, OH 40,000
Wausau Groveton,NH 105,000
Valentine Lockport, LA 35,000
2007 total tonnage reduction 1,425,000 tons
Some Recent Notable Acquisitions
Acquiring Company Purchase year
Domtar Weyerhaeuser 2007
Abitibi Bowater 2007
Investor Group St Marys 2007
PaperlinX Cascades 2006
NewPage StoraEnso NA 2008
Aldabra2 Boise from Madison Dearborn2008
Brookfield Longview Fibre 2007
Rank Blue Ridge 2007
International Paper Central Lewmar 2007
Neenah Fox River 2007
Atlas Finch 2007
Apollo / Versa Int’l Paper coated 2006
Glatfelter NewPage Carbonless 2006
Koch Georgia Pacific 2005
Kohlberg Inter’l Paper Industrial 2005
Mohawk Inter’l Paper Specialty 2005
Smart Paper Fraser Wisconsin mill 2005
Domtar Weyerhaeuser 2007
Abitibi Bowater 2007
Investor Group St Marys 2007
PaperlinX Cascades 2006
NewPage StoraEnso NA 2008
Aldabra2 Boise from Madison Dearborn2008
Brookfield Longview Fibre 2007
Rank Blue Ridge 2007
International Paper Central Lewmar 2007
Neenah Fox River 2007
Atlas Finch 2007
Apollo / Versa Int’l Paper coated 2006
Glatfelter NewPage Carbonless 2006
Koch Georgia Pacific 2005
Kohlberg Inter’l Paper Industrial 2005
Mohawk Inter’l Paper Specialty 2005
Smart Paper Fraser Wisconsin mill 2005
China’s Paper Industry continues to Grow
China may pass the USA as the world's leading producer of paper and board. RISI just reported on a survey that outlines in 2007, USA produced 84million tons compare to China at 65million. But China’s capacity continues to grow.
White Birch Completes Acquisition of SP Newsprint
White Birch Paper has bought the fourth largest newsprint producer, SP Newsprint, for $350million in cash. White Birch is now the second largest newsprint North American producer with AbitibiBowater as #1. (FYI. #2 largest in world is Norske Skog out of Norway). This acquisition increases White Birch capacity to 2.1 million tons or 18% of USA market share. The market leader, AbitibiBowater, has 47%, and #3 is Kruger with 10%. The top 3 North American producers have 75% of the domestic market share.
Note on Newsprint market: AbitibiBowater announced another $60/ton price hike increase for the second quarter. Just like the $60/ton increase for the first quarter
Note on Newsprint market: AbitibiBowater announced another $60/ton price hike increase for the second quarter. Just like the $60/ton increase for the first quarter
Wednesday, February 20, 2008
Another Wave of Price Increases
On the uncoated front, Domtar, International Paper, Georgia Pacific and Evergreen have all announced a $60/ton March price increase on 50lb offset rolls, with other uncoated freesheet grades set to follow. The increase comes shortly after many producers announced a $60/ton increase on business papers for February
Note: demand for uncoated is actually weaker; however, the market remains tight because capacity is shrinking (reduced by 1.4Million tons in ‘07), with further capacity reduction scheduled in 2008.
Note: demand for uncoated is actually weaker; however, the market remains tight because capacity is shrinking (reduced by 1.4Million tons in ‘07), with further capacity reduction scheduled in 2008.
Publication Papers to Increase in Price
Recently, both Kruger and Myllykoski have announced $60/ton price increase for publication papers for early April. These two suppliers are smaller, but we think other producers will follow with the magazine and catalogue market remaining extremely tight. Deutsche Bank - Equity Research reported that price on 40lb coated papers have risen $190/ton between June of 2007 and January of 2008.
Shipment volumes rose 11.5% this December versus 2006 (+2.9% YTD).
Shipment volumes rose 11.5% this December versus 2006 (+2.9% YTD).
Packaging Grades also see Increased Pricing
According to Mark Wilde of Deutsche Bank
The 7 largest producers (75% of North American market) have announced a $50/ton price hike for early March. Inventories remain lean, operating rates are high, and fiber costs are rising. The big obstacle will be making a containerboard price hike "stick" in the wake of sluggish box demand. December 6.8% drop in box shipments appears an "overstatement" on the downside, but it does raise a yellow caution flag. Smurfit-Stone plans to install six new
corrugators (one per month) in the first half of '08 to create "super" plants, which will be capable of replacing as many as 2-3 existing plants.
The 7 largest producers (75% of North American market) have announced a $50/ton price hike for early March. Inventories remain lean, operating rates are high, and fiber costs are rising. The big obstacle will be making a containerboard price hike "stick" in the wake of sluggish box demand. December 6.8% drop in box shipments appears an "overstatement" on the downside, but it does raise a yellow caution flag. Smurfit-Stone plans to install six new
corrugators (one per month) in the first half of '08 to create "super" plants, which will be capable of replacing as many as 2-3 existing plants.
Wednesday, February 13, 2008
Saving Money on that Printed Piece
The power of the printed word and personalized promotional direct mail pieces continue to grow. Direct Magazine just reported that printed material could cost a marketing department 1-4% of a company’s revenue. A few suggestions to assist with keeping the cost down (note postage increase was just announced for May2008)-
-Adjust the size of your printed piece to a common press size – using irregular designs, even if you are off ¼ inch will cost you money
-With over 40,000 printers in USA it important to research and negotiate with the printer that have the proper equipment and a history of dealing with jobs similar to yours.
-Coordinate printing with other departments in your company – awarding more work to one printer allows you more leverage
-Split up and evaluate each piece of the job, printing and distribution equates to half the
cost of the job, paper, the other half. You may be better supplying paper to the printer. Web sites such as www.paper.com has over 35,000 papers all at competitive pricing. They will ship directly to your printer.
-Consider a lighter weight paper if piece is to be mailed.
-Do not be afraid to work with a printer away from a major city; printers farther away are generally more economical and produce excellent work.
-Ask about the different types of printing –digital, offset, letterpress, and flexography all generate different results at different prices.
-Talk to several printers for competitive bids, remember, the cheapest bid may not produce the best results – but a minimum of 3 bids keeps everyone honest.
-Adjust the size of your printed piece to a common press size – using irregular designs, even if you are off ¼ inch will cost you money
-With over 40,000 printers in USA it important to research and negotiate with the printer that have the proper equipment and a history of dealing with jobs similar to yours.
-Coordinate printing with other departments in your company – awarding more work to one printer allows you more leverage
-Split up and evaluate each piece of the job, printing and distribution equates to half the
cost of the job, paper, the other half. You may be better supplying paper to the printer. Web sites such as www.paper.com has over 35,000 papers all at competitive pricing. They will ship directly to your printer.
-Consider a lighter weight paper if piece is to be mailed.
-Do not be afraid to work with a printer away from a major city; printers farther away are generally more economical and produce excellent work.
-Ask about the different types of printing –digital, offset, letterpress, and flexography all generate different results at different prices.
-Talk to several printers for competitive bids, remember, the cheapest bid may not produce the best results – but a minimum of 3 bids keeps everyone honest.
AbitibiBowater sells Snowflake Mill
As part of the antitrust agreement, allowing Abitibi and Bowater to consolidate, the Snowflake, Arizona mill was sold. It was sold for $161million dollars, which most industry experts thought was low. Perhaps because the mill’s only product was newsprint, a shrinking market demand.
Tuesday, February 12, 2008
Paper.com as one of the World’s Largest Paper Websites Introduces Environmentally Friendly Papers
P. Scott Vallely, a paper industry executive; and John Engel, an expert in web design and internet marketing have announced the introduction of a new store on the Paper.com. website to market environmentally friendly papers. This section of the site has nearly 800 papers focused on a clean world. Many grades are produced with 100% recycled fibers, or completely tree-free, as well as Chlorine free. The site also markets papers that are manufactured with alternative energy. Dozens of the grades are FSC certified, and carry the Green seal certificate. Visit the “green Store” at Paper.com http://paper.com/department/green/
The site boosts to have the greatest assortment of ‘green papers’ and they are all available for immediate shipment and offered at competitive prices.
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 8000 unique visitors every day clicking onto www.paper.com
The company has recently made the list of top 500 retail websites in USA as reported by Internet Retailer.
The site boosts to have the greatest assortment of ‘green papers’ and they are all available for immediate shipment and offered at competitive prices.
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 8000 unique visitors every day clicking onto www.paper.com
The company has recently made the list of top 500 retail websites in USA as reported by Internet Retailer.
Fraser Shutters Paper Making Equipment in New Hampshire
Fraser Papers Inc. says it is curtailing production at its paper mill in Gorham, N.H. "for an indefinite period" laying off 167 staff and 109,000 tons of paper production due to rising input costs, "particularly oil and market pulp."
The mill is curtailing production of commodity freesheet paper grades on two paper machines starting April 13. Production on another machine at the mill was suspended late in 2007, as reported by Paper.com. The company said it expects to continue operating two of the five paper machines in Gorham that produce specialty printing papers, namely principally light-weight opaque papers, and industrial towel.
The mill is curtailing production of commodity freesheet paper grades on two paper machines starting April 13. Production on another machine at the mill was suspended late in 2007, as reported by Paper.com. The company said it expects to continue operating two of the five paper machines in Gorham that produce specialty printing papers, namely principally light-weight opaque papers, and industrial towel.
Stora Enso Converts Paper Machine
Stora Enso will convert a coated magazine paper machine at its Anjala, Finland to produce both coated and uncoated book papers. This is estimated to be complete by October 2008. The project will increase the mill’s book capacity to 320,000 tons (up from 65,000 tons).
UPM to Cut Newsprint, Magazine Paper capacity
UPM has announced a consolidation of production equipment, which will mean shutting down equipment.
-Closure of Miramichi Canada – 450,000 tons magazine papers
-Temporary shut down newsprint machine in Kajaani, Finland and one in Steyrmuhl, Austria -250,000 tons
- Temporary shut down machine in Jamsankoski and one in Tervasaari (both in Finland) – for reduction in label papers
-Closure of Miramichi Canada – 450,000 tons magazine papers
-Temporary shut down newsprint machine in Kajaani, Finland and one in Steyrmuhl, Austria -250,000 tons
- Temporary shut down machine in Jamsankoski and one in Tervasaari (both in Finland) – for reduction in label papers
Domtar to Close Port Edwards mill and Reduce Dryden Capacity
Domtar is on schedule with its announced capacity reductions. It will close Port Edwards, Wisconsin, which had a capacity of 165,000 tons of uncoated Freesheet, sometime in the second quarter of 2008. In addition to this mill, Domtar will reduce production of its Dryden, Canada facility. The #2 machine, producing 332,000 tons will be shut down and the #1 machine will be started back up, it will produce 155,000 tons – both machines manufacture uncoated free sheet. Domtar’s net reduction with this announcement, as well as previously shuttered equipment, will be 340,000 tons.
Friday, February 08, 2008
Clinton Outspends Obama on Printing
From Printing Impressions Magazine
NEW YORK—When it comes to spending dollars on printed products during the last three months of 2007, Hillary Clinton stormed past Barack Obama, according to Federal Election Commission statistics. Clinton’s printing costs came in at roughly $1.3 million while Obama registered nearly $710,000.
Curiously, the leading candidates vying for the Democratic presidential nod swapped places on postage expenses: Obama’s receipts totaled roughly $1 million while Clinton spent $332,000. The former First Lady did triumph via a lower Verizon phone bill: $14,000 to Obama’s $70,000.
NEW YORK—When it comes to spending dollars on printed products during the last three months of 2007, Hillary Clinton stormed past Barack Obama, according to Federal Election Commission statistics. Clinton’s printing costs came in at roughly $1.3 million while Obama registered nearly $710,000.
Curiously, the leading candidates vying for the Democratic presidential nod swapped places on postage expenses: Obama’s receipts totaled roughly $1 million while Clinton spent $332,000. The former First Lady did triumph via a lower Verizon phone bill: $14,000 to Obama’s $70,000.
Thursday, February 07, 2008
Newspapers continue to feel the Pressure
The New York Times reported that most of the industry’s executives and analysts believe newspapers will continue to be cannibalized by online, Internet competition and shrink. In 2007, combined print and advertising revenue fell about 7% and ad revenue was 20% below its 2000 peak. Circulation revenue has declines steadily since 2003. The Boston Globe and The Los Angeles Times both reported they have lost 30 to 40% of their circulation in the last few years. Local advertising has fallen, while national ads have actually increased somewhat. It was also noted that the real estate downturn has affected newspaper business.
Newspaper executives have done a poor job adopting to the Internet and being more creative on generating revenue. Perhaps the only savior now is the migration of newspapers now offering news on the Internet and joining the online world.
As reported in so many past news releases on our site, Newsprint, the paper used for newspapers, continues to decline in demand.
Newspaper executives have done a poor job adopting to the Internet and being more creative on generating revenue. Perhaps the only savior now is the migration of newspapers now offering news on the Internet and joining the online world.
As reported in so many past news releases on our site, Newsprint, the paper used for newspapers, continues to decline in demand.
Smart Papers reintroduces Carnival Paper Grade Line
Smart Papers recently announced that it updated and simplified its Carnival Text, Cover, and Writings grades. The mill introduced a 98 bright white that offers vivid full-color print performance on traditional offset and digital printing equipment.
Paper.com markets the entire Smart Papers line, from the new selection of Carnival grades, to the popular Kromekote and scrapbooking grades and environmentally friendly Genesis line.
Paper.com markets the entire Smart Papers line, from the new selection of Carnival grades, to the popular Kromekote and scrapbooking grades and environmentally friendly Genesis line.
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.
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