Thursday, April 05, 2007
Finland Produces Record Production of Paper
Finland reported a production of 14.1 million tons of paper and paperboard in 2006. Manufactures also reported a record 13 million tons of pulp was produced. These figures are 15% more than 2005.
Tuesday, April 03, 2007
Uncoated Business Papers Price Increase
International Paper has announced a $60/ton price hike on cutsize uncoated free sheet papers. The increase will take effect on May 3rd. Uncoated paper prices and demand have been rising in Europe, however, USA witnessed weaker than normal February demand. Price increases have also been announced in Asia. Permanent capacity closures by International Paper and Georgia Pacific will reduce US supply. Most Likely, other players to follow. Domtar, Boise and Georgia Pacific are the other key players in the market.
Paper.com has the widest assortment of uncoated business papers on the web - available and ready for immediate shipment.
Paper.com has the widest assortment of uncoated business papers on the web - available and ready for immediate shipment.
Monday, April 02, 2007
USA Announces Tariffs on Imports from Asia
USA will impose tariffs on Coated Paper from China, Indonesia, and Korea for Counter Vailing Duties (CVD). These duties will take effect immediately. This tariff affects coated free sheet grades only. The duties are set at 10-20% but could rise higher.
The level of imports into USA was 6.2% of Coated Free Sheet consumption in 2006 and were expected to rise in 2007. This is also positive for producers of uncoated producers such as Domtar and International Paper, since some coated producers running UFS should swing back to coated.
Current tariff for respective mills are as follows.
CHINA
Gold East 20.35%
Chenming 10.90%
All others 18.16%
INDONESIA
TK and PD 21.24%
all others 21.24%
KOREA
EN Paper 0.08%
Hansol 1.76%
Keysong 0.59%
Moorim 0.04%
all others 1.76%
The level of imports into USA was 6.2% of Coated Free Sheet consumption in 2006 and were expected to rise in 2007. This is also positive for producers of uncoated producers such as Domtar and International Paper, since some coated producers running UFS should swing back to coated.
Current tariff for respective mills are as follows.
CHINA
Gold East 20.35%
Chenming 10.90%
All others 18.16%
INDONESIA
TK and PD 21.24%
all others 21.24%
KOREA
EN Paper 0.08%
Hansol 1.76%
Keysong 0.59%
Moorim 0.04%
all others 1.76%
Harry Potter Book goes Recycle
The Children’s book publisher, Scholastic, will use recycled paper certified by the FSC in printing the seventh and final book in the Harry Potter series.
Come to Paper.com for all your recycled needs.
Come to Paper.com for all your recycled needs.
News from Europe Paper market
Copied off the international wire
In Europe: Demand for uncoated magazine paper is expected to ease after strong growth in 2006. Coated magazine paper demand improved in early 2007 and is expected to be moderately positive for the year. Modest demand
growth is expected for newsprint. Demand for uncoated fine paper remains good, particularly in Eastern Europe. Demand is healthy and strong order inflow is expected for coated fine paper and packaging boards. Demand for wood products is expected to be healthy in most markets. Contract negotiations for newsprint prices have been completed and prices increased by an average of 5% in Western Europe. Magazine paper prices have declined at the beginning of 2007 and may remain under pressure for non-contractual business. Further price increases are expected in uncoated fine paper, and increases are being negotiated in coated fine paper. Some moderate increases in packaging board prices are implemented. Some production curtailments are expected at Enocell Pulp Mill (part of Packaging Boards) in the second quarter of 2007 due to shortage of raw material. In wood products further product price movements are likely to reflect wood costs.
USA Market – as told through European wire
In North America: Demand for newsprint is expected to decline further. Demand for magazine paper, particularly coated magazine paper, remains weak due to seasonal reasons and underlying end-use weakness. Demand in coated fine paper is forecast to remain flat. Prices for publication papers are still declining. Coated fine paper reel prices are under pressure, but some price increases for sheet products are being negotiated.
Other Markets
In China, coated fine paper demand is expected to improve later in the spring and prices to firm up. In Latin America, modest growth in demand for coated magazine paper is anticipated, but downward price pressure is increasing. Operating cost inflation is forecast to be 2.0% to 2.5% higher in 2007 than 2006, primarily because of increased wood costs, including the impact of the Russian duties on wood.
In Europe: Demand for uncoated magazine paper is expected to ease after strong growth in 2006. Coated magazine paper demand improved in early 2007 and is expected to be moderately positive for the year. Modest demand
growth is expected for newsprint. Demand for uncoated fine paper remains good, particularly in Eastern Europe. Demand is healthy and strong order inflow is expected for coated fine paper and packaging boards. Demand for wood products is expected to be healthy in most markets. Contract negotiations for newsprint prices have been completed and prices increased by an average of 5% in Western Europe. Magazine paper prices have declined at the beginning of 2007 and may remain under pressure for non-contractual business. Further price increases are expected in uncoated fine paper, and increases are being negotiated in coated fine paper. Some moderate increases in packaging board prices are implemented. Some production curtailments are expected at Enocell Pulp Mill (part of Packaging Boards) in the second quarter of 2007 due to shortage of raw material. In wood products further product price movements are likely to reflect wood costs.
USA Market – as told through European wire
In North America: Demand for newsprint is expected to decline further. Demand for magazine paper, particularly coated magazine paper, remains weak due to seasonal reasons and underlying end-use weakness. Demand in coated fine paper is forecast to remain flat. Prices for publication papers are still declining. Coated fine paper reel prices are under pressure, but some price increases for sheet products are being negotiated.
Other Markets
In China, coated fine paper demand is expected to improve later in the spring and prices to firm up. In Latin America, modest growth in demand for coated magazine paper is anticipated, but downward price pressure is increasing. Operating cost inflation is forecast to be 2.0% to 2.5% higher in 2007 than 2006, primarily because of increased wood costs, including the impact of the Russian duties on wood.
Blue Ridge Paper's up for Sale
Blue Ridge Paper Products Inc announced that it is engaged in discussions with New Zealand-based The Rank Group regarding a potential sale. It is believed a sale of the company to The Rank Group could be positive for credit quality and assure financial stability for the mill.
Verso Paper reports 4Q06 loss of $6Million
Verso Paper Holdings LLC reported its results for the fourth quarter for business once owned by the Coated and Supercalendered Papers Division of International Paper Company, for the year ended December 31, 2006; siting challenges by on increase in costs of pulp, energy, raw materials
Highlights for the fourth quarter of 2006 include:
Revenues of $408.0 million in 2006 compared to $410.9 million during
the prior year period.
* Operating income of $21.9 million versus operating income of $11.8
million in the prior year period.
* Net loss of ($6.0) million for the quarter versus net income of
$4.7 million in the prior year period.
Revenues of $1,611.3 million in 2006 compared to $1,603.8 million
during the prior year.
* Operating income of $71.3 million versus operating income of $60.2
million for the prior year.
* Net income of $8.9 million compared to $27.6 million in 2005.
Paper.com has all the Verso grades available on a manufacturing basis.
Highlights for the fourth quarter of 2006 include:
Revenues of $408.0 million in 2006 compared to $410.9 million during
the prior year period.
* Operating income of $21.9 million versus operating income of $11.8
million in the prior year period.
* Net loss of ($6.0) million for the quarter versus net income of
$4.7 million in the prior year period.
Revenues of $1,611.3 million in 2006 compared to $1,603.8 million
during the prior year.
* Operating income of $71.3 million versus operating income of $60.2
million for the prior year.
* Net income of $8.9 million compared to $27.6 million in 2005.
Paper.com has all the Verso grades available on a manufacturing basis.
Time Inc. on the Block? Time Warner Says 'No'
Exported from - March 29, 2007, Folio - Long-time rumors that Time Warner may sell its publishing division came to a head this week when Forbes.com reported that news of possible sale of Time Inc. sent Time Warner shares up.
But a source told Folio: Although the future of Time Inc. was unclear, Time Warner officials have recently said they plan
to remain in the publishing business. Time Warner thinks publishing is a great business to be in and plans to stay there.
But a source told Folio: Although the future of Time Inc. was unclear, Time Warner officials have recently said they plan
to remain in the publishing business. Time Warner thinks publishing is a great business to be in and plans to stay there.
Coated Free Sheet Market
Most producers have announced $50-$60/ton hikes on lower grade coated free sheet for March. Rising pulp costs and capacity reductions are both helping to firm the market. However, the biggest domestic issue is duties on Asian imports. Preliminary countervailing duties on Chinese, Indonesian and Korean imports are 18%, 21% and 2%, respectively. The next step
is a Commerce Department ruling on antidumping duties, due out on May 29th. Domestic shipments rose 10% in February ahead of possible duties on Asian imports.
Paper.com has all the major producer's coated papers - available and ready for immediate shipment.
is a Commerce Department ruling on antidumping duties, due out on May 29th. Domestic shipments rose 10% in February ahead of possible duties on Asian imports.
Paper.com has all the major producer's coated papers - available and ready for immediate shipment.
Market Pulp
Softwood markets remain tight. Softwood inventory days of supply dropped from 27 in January to 25 in February. European producers announced $20/ton hikes in Europe for April, joining their USA counterparts, this increase has a good chance of going through. Expect hardwood markets to feel more impact from new Latin mills .
Finch - Another Paper Mill Sold
Atlas Paper Resources LLC, and other investors, to acquire Finch, Pruyn Paper mill. Atlas Holdings LLC is a holding company that operates Businesses in a number of industrial sectors, including the paper, packaging, wood products and steel industries.
Atlas Paper Resources will purchase all of the company's assets, including its manufacturing facilities in Glens Falls, N.Y., and its Adirondack forestland. Finch, Pruyn has the capacity to produce 250,000 tons per year of of premium uncoated paper for advertising materials, book publishing, and business office papers. The mill employs 850 works and has about 160,000 acres of land in the Adirondacks.
Paper.com carrys all the Finch, Pruyn products, all available and ready fo immediate shipment.
Atlas Paper Resources will purchase all of the company's assets, including its manufacturing facilities in Glens Falls, N.Y., and its Adirondack forestland. Finch, Pruyn has the capacity to produce 250,000 tons per year of of premium uncoated paper for advertising materials, book publishing, and business office papers. The mill employs 850 works and has about 160,000 acres of land in the Adirondacks.
Paper.com carrys all the Finch, Pruyn products, all available and ready fo immediate shipment.
Thunder Bay Paper Mill Sold
The Cascades Paper Mill, once called Provincial Papers and owned by Abitibi was sold to a private investment company called Thunder Bay Fine Papers. The mill has been closed since early 2006 and will take @35million to start back up. The mill made 170,000 tons per year of coated book papers.
Domtar Introduces Antimicrobial Paper
Domtar announced the introduction of antimicrobial paper. The sheet is coated with a silver compound that kills, most bacteria – as well as odors, fungus, mold and mildew. This will be sold as 8 ½ x 11” office paper for both inkjet and laser desktop copiers.
Georgia Pacific to take Down Time
Last week Georgia Pacific announced it will permanently shut down the 110,000 ton/yr uncoated Freesheet PM 4 in Wauna, OR. This mill produced offset rolls.
Come to Paper.com for all your Offset uncoated Freesheet demands.
Come to Paper.com for all your Offset uncoated Freesheet demands.
Postal Rates to increase – will hurt Paper Sales
The US Postal Service recently announced a rate increase for first class stamps by 5.1% effective May 14; and a rate hike for publication mailing such as magazines and catalogues for July 15.
The increase for publications is one more component to add to all the other recent cost increases printers have experienced. Energy, freight, fiber, chemicals, and now distribution costs. Most likely reducing paper consumption to save money.
The increase for publications is one more component to add to all the other recent cost increases printers have experienced. Energy, freight, fiber, chemicals, and now distribution costs. Most likely reducing paper consumption to save money.
Wednesday, March 28, 2007
Slow Down in Advertising for magazines slows Down Paper Sales
The number of advertising pages in all the major publications remains flat, or slightly on the decline. As a result, magazines are producing smaller magazines and thus less paper is consumed. This mainly effects the groundwood containing sheets.
Pulp Prices up yet again
Pulp prices are continuing their steady upward march this year, tightening margins for paper and paperboard producers who have been having trouble getting sales price increases for their products.
Now, a handful of North American pulp makers have told customers they want further price increases on softwood kraft and fluff grades in April. The list price boost of softwood kraft grades is $20/metric ton; the proposed hike on fluff is $30/metric ton.
So, the proposed list prices next month will be $810/metric ton for northern bleached softwood kraft. Buyer surveys show that NBSK averaged $770 in the spot market, as compared with a list of $790. The new list will be $770 for southern bleached softwood kraft; this month, SBSK has averaged $735 versus a list of $750. Meanwhile, in fluff pulp, suppliers want to bring their list price to $820/metric ton from $790. This month’s spot has averaged $780.
Now, a handful of North American pulp makers have told customers they want further price increases on softwood kraft and fluff grades in April. The list price boost of softwood kraft grades is $20/metric ton; the proposed hike on fluff is $30/metric ton.
So, the proposed list prices next month will be $810/metric ton for northern bleached softwood kraft. Buyer surveys show that NBSK averaged $770 in the spot market, as compared with a list of $790. The new list will be $770 for southern bleached softwood kraft; this month, SBSK has averaged $735 versus a list of $750. Meanwhile, in fluff pulp, suppliers want to bring their list price to $820/metric ton from $790. This month’s spot has averaged $780.
Appleton Plans Thermal Paper Capacity Increase
North America’s largest thermal paper producer recently announced plans to increase capacity. They will spend $100million on a new coater for making thermal papers. Appleton believes the growth in two-sided thermal paper will continue. This type of paper is used for casino studs, point of purchase receipts, ballot box voting and deli stickers. Appleton Paper also produces carbonless papers.
Paper.com has Appleton's complete grade offerings, including all the entire family of NCR carbonless items.
Paper.com has Appleton's complete grade offerings, including all the entire family of NCR carbonless items.
Uncoated Papers will increase in Price
Demand for uncoated Freesheet continues to strengthen and with supply curtailment, producers will surely begin to increase pricing. Cost pressure also continues with energy prices staying high and increased pricing for pulp and chemicals. The producers of Text and Cover grades have already announced increase in price – lead by Mohawk, Neenah/Fox River, and Wausau.
Paper.com is the world's largest paper website, supplying nearly every mill's uncoated text and cover grade.
Paper.com is the world's largest paper website, supplying nearly every mill's uncoated text and cover grade.
North American Newsprint Producers continue to suffer
Pricing continued its downward spiral for January, February and so far this month (March)– witnessing a price decrease of $30/ton. Pricing now on 27.7lbs newsprint (typical weight) is $665/ton. This market continues to be beaten up by the internet.
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