Friday, June 09, 2006

Greenpeace Evaluates Recycled Papers

Greenpeace released the results of their current survey on environmentally friendly papers. They polled people in both the USA and Canada-
-80% of Canadians and 75% of Americans are likely to purchase papers that are recycled
-71% of Canadians and 66% of Americans state they are less likely to buy from companies that cut down 'old forests' for there
source of wood fiber.
-86% of Canadians and 77% of Americans will buy recycled papers, if given the choice.
-7 of 10 Canadians and 66% of Americans would be willing to pay 5% more for recycled paper.
Paper.com has over 18,000 papers - many are recycled.

Paper.com is one of the World’s Largest Paper Websites ranks in top 500 on largest USA websites

Paper.com is in its third year of operations and has witnessed robust growth in sales. Paper.com has nearly 20,000 paper products – representing paper grades for the office, scrapbookers, schools, restaurants, weddings, and printers. The website has over 30 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 internet sites as confirmed in the 2006 survey by Internet Retail Magazine. The company was also ranked #60 for Specialty Retailers in USA.

Paper.com moves into new headquarters and hires a Marketing Manager

P. Scott Vallely, a paper industry executive; and John Engel, an expert in web design and internet marketing teamed up to form Paper.com three years ago. The company has been growing and recently moved into newly renovated corporate headquarters located in New Canaan, Connecticut. To support this growth, they have hired Mr. Edward F. Lane Jr. to Market Manager. Mr. Lane has a deep history in internet marketing, having recently been with Colangelo and Suresource.com.

Tuesday, June 06, 2006

Weyerhaeuser Improves Cougar Opaque grade

Cougar's brilliant 98 brightness and 10 percent recycled content in a stunning blue-white shade makes the Cougar grade one of the finest opaques on the market.
The mill has now offers this grade with a smoother surface for better ink holdout and cleaner print uniformity, Cougar's high opacity and steadfast print quality is an excellent alternative to the higher priced Text and Cover sheets.

THE FUTURE OF LUNA - Domtar Mill in BC

Domtar has signed a non-binding letter of intent to sell their New Westminster, BC, coated paper mill to Belgravia Paper Company, which is associated with West Linn Paper Company.
The agreement has not been finalized yet, but under the terms of the letter of intent, the transaction would close in mid-June. As a result, Domtar will continue its plan to shut down the Vancouver mill
completely by June 16; coated paper production was discontinued on May 12th. Domtar Luna will continue to be sold until inventory is depleted.
Paper.com carries many of the popular Domtar paper items.

Some Coated Manufactures try for Increase

International Paper and Fraser Paper announced a $50/ton increases on coated magazine papers in North America for June shipments.
However, no other coated paper producers joined in on this increase announcement. Most buyers do not think this increase will go into effect.

Summary of Uncoated Wood Free Market

Summary from Analist at Deutsche Bank-
* Another round of uncoated free sheet price hikes-
Over the last week, virtually all producers of cut-size uncoated free sheet paper have announced the third round of price increases in 2006. If successful, these increases will take the list price of 20lb cut-size paper (“copier paper”) to $940/ton. This is an increase of $145/ton from the $795/ton average price back in December, and we think prices could move even higher.

* The biggest issue has been supply reductions in the US and Canada.-
Over the past 18 months, producers have closed mills with a combined capacity of 1,355,000 tons, just under 9% of the North American supply base. Even with prices rallying, the closure process does not appear complete. IP & Boise are converting another 540,000 tons away from UFS within the next year. Moreover, the pending sale or merger of Weyerhaeuser's white paper business may result in further capacity rationalization.

* Other issues include rising costs and foreign exchange. -
All white paper mills are vulnerable to higher chemical, energy and transportation costs. However, for nonintegrated white paper mills, the cost pressure is especially acute. Nonintegrated mills rely on purchased pulp and are much more reliant on purchased energy, both of which are up sharply in the last few years. Finally, a weak US$ is now working against an increase in white paper imports from abroad.

Uncoated Papers remain in Demand

All the major producers have announced $60/ton price increase on copy papers for June. Cut-sized (8 1/2x11) pricing has lagged behind the rebound in roll stock pricing. USA supply reductions (mills taking production out of the market) and modestly better demand have helped dynamics. Also, Brazilian suppliers remain focused on improved local demand, not on raising exports to US.
Weyerhaeuser continues to look for a buyer - maybe International Paper, Boise or Domtar. This will add further confusion
to the market.
Come to Paper.com for all your uncoated requirments.

Pulp Price increases might be Slowing

The market pulp producers announced a $30/ton increase for NBSK and it now appears many buyers are resisting this increase. The average price now paid for the NBSK is $705/ton - which is the highest level in 5 years.

Coated Paper still remains weak

The coated market (glossy magazine paper) continues to be in weak demand. The industry needs manufactures to curtail production just as the uncoated market has successfully done. Discounting is available for coated grades sold in rolls. Paper.com has over 18,000 items - many are coated papers.

Cascades sells its Merchant Group

Cascades, a large Canadian paper company, sold its merchant group known as Cascades Resources. This division was sold to Coast Paper which is a subsidiary of PaperlinX Ltd.

Newspaper Ciculation still on the Decline

The majority of USA newspapers report a decline in readership. The most recent period outlined a decline of 2.6%. Web companies such as Yahoo and Google are providing the information at a growing number -and - it's free. A residual effect includes a decline in paper demanded for the printing of newspapers. Many of these paper manufacturers are curtailing production or rebuilding machines to produce grades that are in demand. Most experts do not believe newspapers will see positive grow in the near term. Paper.com has newsprint available.

Wausau Paper Introduces new Digital Line

Wausau recently introduced a new line of Digital Papers called Exact Digital. The vendors, Kodak - NexPress 2100 and HP Indigo highly endorse this new sheet. Paper.com has Exact Digital available and ready for immediate shipment.

Wausau Paper Introduces new Digital Line

Wausau recently introduced a new line of Digital Papers called Exact Digital. The vendors, Kodak - NexPress 2100 and HP Indigo highly endorse this new sheet. Paper.com has Exact Digital available and ready for immediate shipment.

International Paper sells its Coated Division

International Paper announced it sold its coated paper division to Apollo Management for $1.4billion. The division had four mill locations - two in Maine, Michigan, and Minnesota. The mills produced 2 million tons of magazine and catalogue paper a year and 2005 revenue of $1.6billion.

Monday, May 01, 2006

Uncoated Price Increase .... again

Most of the industry is bracing for yet another price increase in June for Uncoated Woodfree papers. Many believe the copy papers will increase $60/ton ($3.00/cwt) and the roll and folio sheets will increase $40.00/ton ($2.00/cwt). The market demand appears to maintain a strong backlog and producer’s inventories have declined. The Weyerhaeuser announcement has created some fear; however, continued consolidation in the industry is needed

Market Pulp

Following from Deutsche Bank Market Research on Pulp-
MARKET PULP
Domestic pulp producers have announced $30-40/tonne price hikes for
May and June on NBSK; if implemented, list prices would go to
$720/tonne, the highest level in 10 years. Hardwood producers, led
by Lat. Am eucalyptus producers, are separately pursuing $20/tonne
hikes this month. BSK and BHK days/supply inventory both fell one
day in March to 28 and 35 days respectively. World shipments were
up 3.6% y/y in March, led by a surge in shipments outside of North
America, particularly on hardwood grades. GP has reportedly run-
down its NBHK inventories at Old Town, Maine, and Fraser Papers is
scheduled to close its NBHK mill May 6th. Tembec is the latest NBSK
producer to announce a mill closure; its 200K tpy Smooth Rock Falls
mill will close at the end of July.

Coated Board continues to Shrink

MeadWestvaco was the latest to announce removing production of 310,000 tpy of SBS capacity. Between Tembec, MeadWestvaco, and Domtar, almost 500,000 tons of capacity for this grade have been removed. Industry experts predict this grade will be in tight supply as a result and prices will increase.

Paper Industry continues to Plant Trees

The Paper Industry has planted more than three times the amount of trees it had harvested for the pulp and paper manufacture. Forests are growing - not disappearing. Today, there are more than 10 million more acres of forests is the USA than there were 15 years ago. Since 1965, the number of trees growing in USA has increased 39%.

Weyerhaeuser Reports alternatives to Fine Paper Business

The management team at Weyerhaeuser has announced it is considering alternatives to its fine paper business segment. The choices include a complete divesture of the uncoated paper assets. This is big news considering the dominant market position of this paper company.