Corrugated Container Market becoming Snug

Box volumes were up in September and inventories remain lean while operating rates averaged 98.3%. Additional good news included exports rising and imports falling. The strength of these numbers along with the rapid implementation of the recent box price hike may yield an additional price increase early next year.

Environmentally-Friendly Paper for Second Printing

Fraser Papers Inc. announced today that it had been selected to provide environmentally-friendly paper for the second printing of the U.S. edition of Harry Potter and the Deathly Hallows. Fraser Papers was one of the suppliers for the first printing of the book, which was released in July. As reported earlier by Paper.com, the paper manufactured for this book was customized and contained 30% post-consumer content and pulp certified by the Forest Stewardship Council ("FSC"), an internationally recognized organization driving responsible international forest management standards.

The coated paper market could be tightening??

North American coated paper markets have tightened dramatically in recent weeks. For the first time in several years, customers are scrambling for supply. Certainly the anti-dumping charges have kept imported paper to a minimum and havereduced supply. Imports accounted for approximately 1million tons per year.

In uncoated free sheet, Domtar continues to hint it may cut further capacity. Beneficiaries would include the two big players, Domtar and International Paper. Other beneficiaries on our coverage list would
include specialty names like Glatfelter and Wausau.
From: RISI North American Global Forest Products Conference

Leading Paper Website Announces Price Increases

Paper.com, one of the largest online internet sites, exclusively markets paper products. They recently announced a price increase for all business papers and forms; text; cover; writing; as well as office and stationery grades. This includes popular items from mills such as International Paper, Mohawk, Smart, Fox River, Domtar, Boise, Neenah, Wausau, Finch Pryun, Xerox, and Monadnock. P. Scott Vallely, Managing Director, sited that all our mills increased price because they are experiencing additional costs related to pulp, chemicals, freight, energy, and labor. We tried to maintain pricing as long as possible, but now must pass these cost increases to our end users.
Paper.com has over 40,000 items in inventory and ready for immediate shipment. The company recently launched a new site, making it easier to search through the many popular items. They also introduced 888PaperGreat to call for assistance.

Environmentalists are upset at Sears Catalog

Associations that promote the greening of earth have voiced frustration at Sears and Kmart for their continuous use of paper from endangered forests in California and Canada and not using more recycled papers in their paper supplies. Sears is now the largest catalog company that has not taken steps toward environmental sustainability. Sears mails 425million catalogs annually – including 270million under its Lands End brand. One association, ForestEthics, has insisted that Sears begin to use more post consumer recycle waste in the catalogs.

NewPage’s Sterling Grade Line expanded

Paper.com recently introduced the newest Sterling Ultra grade offerings. The product is now available in 7, 8, and 9-point gloss. The grade has 10% post consumer waste. These new items are especially desirable for a reply card program.

Paper.com opens Environmentally Friendly ‘Green’ Store

One of the paper industrys' largest web marketing companiy outlined several steps for its end users to become eco-conscious and create cost effective printed material. The company believes that orders recycled papers and creates promotions that are good for the environment are also good for business. Sincere goodwill goes a long way and everyone is very interested in protecting the environment. Green minded end users and projects should plan beyond just using recycled paper. Virgin, recycled, and tree free paper are all very different papers. Virgin fibers are directly from trees, they are the cleanest and strongest, but have the most direct effect on the consumption of natural resources. The Forest Stewardship Council (FSC), Sustainable Forest Initiative (SFI), and Program for the Endorsement of Forest Certification (PEFC) traces paper components to its origins via third party certification. This assures end users that papers are from appropriate trees and forests and no old growth forests were used. Recycled papers account for approximately 37% of all the raw material used in domestic products. Recycled papers benefit include less energy consumed, lower green house emissions, reduced wastewater and less solid waste. Post consumer waste (PCW) is total recycled fiber and tree free is generally hand made – produced from kenaf, hemp, flax, cotton, or a combination.
Other environmentally friendly initiatives include using uncoated paper instead of coated papers. Coated, or glossy, has clay content, which is not good for recycling. Also, if you design a piece that is smaller in size – this uses less paper, chemicals, and ink, which are all better for the environment. Choice in inks is also important – soy or vegetable based versus the more popular Petroleum based is an excellent alternative. Lastly, noncomplex design and folding generates a more efficient product and thus less waste.
Paper.com can certainly assist with recycled and tree free papers – but consideration should also be considered for other environmentally friendly ideas.

Xerox Introduces new Copier that Promises to Cut Cost of Color Copies

Xerox recently introduced a new line of copiers that promises to cut the cost of color copies. Xerox, the world’s largest maker of high speed color printers, will start selling the Phaser 8860 which will generate color copies for 0.05 for full color page. Color accounts for 12 percent of the more than 30 million pages printed from Xerox copiers last year. Growth is in color and this new equipment will help.
Paper.com carries many of the Xerox papers as well as many other brands suitable for Xerox equipment.

Harry Potter New Book on Recycled Paper

The newest Harry Potter book, Deathly Hallows, consumed over 22million pounds of paper of which 6,700 tons was FSC certified. This is considered the largest paper purchase for a single book. The FSC certification confirms that the paper was from forestlands that are managed in a socially and environmentally responsible manner. Experts believe this purchase saved nearly 200,000 trees.
Paper.com, unfortunately, did not supply the paper for this book – but the site has many 100% recycled papers as well as FCI and FSC papers, in stock and ready for immediate delivery.

Mohawk Introduces New Papers for the Digital Presses

Mohawk Papers recently expanded its digital portfolio with additional i-tone products. They added heavier weights and new sheet sizes. The Mohawk Color Copy grade now has 110lbs cover. This grade is designed for Xerox’s iGen3 Digital press. The mill also has many new Via grades for the iGen3, Kodak NexPress2100, and HP Indigo digital presses.
Paper.com has all the newest digital grades, including all the Mohawk products

Newsprint continues its downward slide

Newsprint consumption continues its decline along with paper pricing and supply of product. Demand has fallen even greater than anticipated. In 2005 total North America demand dropped over 6% to 10.4million tons – with USA daily newspaper consumption falling 5.4% or 7.5million tons. In 2006 the decline continued, as North American demand dropped to 9.7million tons. In 2007, the demand has fallen 9 months in a row. USA newspapers continue to loose circulation, pages and have made the actual newspaper publication smaller in size – all leading to less paper.

Newsprint volumes and prices remain under pressure. Industry experts expect further pressure for the balance of the year. Prices have dropped $110/ton since last September, after declining during each of the last 12 months. We expect year end results will be brutal as lower prices and higher costs will be.
The largest dynamic in the newsprint market includes the proposed combination of Abitibi (#1) and Bowater (#2). Other producers such as Catalyst, Kruger or White Birch could emerge as additional consolidators. SP Newsprint is reportedly still on the blocks. Boise appears poised to convert one of its newsprint machines to containerboard.

COATED GROUNDWOOD PAPER UPDATE

Paper.com had experienced price increases in August, with No. 5 40-lb offset rolls prices rising $35/ton. Prices continued on the website to rise in September, up another $5-10/ton. This continues the rebound from the slow demand experienced in the first half of the year, and paper manufacturers are confirminga sudden turnaround in customer demand for coated paper. Shipments rose 15.5% in July from 2006. The market is fairly tight and enjoyed more help from last week's downtime announcement from Kruger.

UNCOATED FREE SHEET UPDATE

Most of September's offset hikes which Paper.com has confirmed have stuck. All the major paper producers, including Domtar, International Paper and Boise Cascade, introduced an increase on offset roll prices by $60/ton and offset folio sheets prices by $30/ton in mid September. While demand has been steady, supply reductions are keeping the market in reasonable balance.
Paper.com, a major source of supply for printing and writing grades, was experienced an increase on the majority of its commodity grade offerings.

Leading Online Paper Marketer Introduces New Site

Paper.com, one of the leading online marketers of paper products recently
released an all new website to allow for a more efficient website. The company exclusively markets over the web. Paper.com has 46 warehouses though out the USA representing over 40,000 paper items from all the major paper producers. The company was founded by John Engel, an internet marketing expert, and P. Scott Vallely, a paper industry executive, to produce the industry’s largest web site. Paper.com focuses on office, stationery, school, scrapbook, Artist, and theme papers. The company boosts of over 7000 visitors every day.

New Environmentally Friendly Digital Sheet Introduced

Galerie Art Digital is new digital grade from Paper.com and produced by the M-Real Paper mill. It is fairly new and is promoted as a very 'Green " sheet, made from recycled fibers.
M-real paper mill recently launching two new products in the Data Papers range of office papers at the Paperworld show in Frankfurt. Data Color Inkjet Photo Gloss, Digital, and Data Color Inkjet Photo Matt hit the market and offer customers a wider choice in a market where new technologies and particularly increased use of color applications put ever greater demands on high quality paper products. Available in text and cover weights from Paper.com.

Paper.com introduces new Environmentally Friendly Grade

Domtar EarthChoice Office Paper is an FSC-certified multifunction grade that offers guaranteed performance on high-speed copiers, laser printers, and inkjet printers and offset presses. The 92 GE brightness and FSC certification make it an ideal choice for customers who want to practice environmental responsibility on an everyday basis. It is acid-free for longer archival life. The grade is suitable for Copier, inkjet and laser and digital printers and is ideal for everyday desktop copying and printing.
Paper.com recently added this grade to its extensive line of environmentally friendly grade offerings.

MARKET PULP UPDATE

It's turning out to be a favorable pulp cycle. The pulp rally shows no signs of slowing down. The market saw a $20/ton price hike initiative on NBSK for September. Moreover, the prices of most hardwood grades rose $20- 25/ton in August, and with the market remaining tight, several producers have announced a $20-30 increase for October. The steep drop in the US dollar in recent weeksiwill provide the fuel for further attempts to boost prices. Despite the highest prices in over a decade, a strong Canadian dollar for high chip costs are squeezing Canadian mills.

Pulp continues to Climb

Parsons & Whittemore, Sappi Fine Paper North America and most other producers have informed customers that they will initiate a $20/metric ton price increase on northern bleached hardwood Kraft (NBHK) pulp shipped after October 1, boosting the industry’s list to $765. Fraser Paper started the price hikes last week. Transaction prices for NBHK have risen from $610/metric ton in January to $730, according to monthly surveys of buyers by Purchasingdata.com.
Parsons & Whittemore also plans a $20/metric ton price increase on southern bleached hardwood Kraft (SBHK) pulp in the U.S. to $750. The RISI.com subscription newsletter says SAPPI plans to raise prices $25/metric ton on three grades of NBHK pulp in North America. Its prices on aspen and mixed pulp now are slated at $750 and maple grade is at $760.
In addition to the SBHK and NBHK hikes, producers of bleached eucalyptus, birch, and hardwood-derived bleached pulp have came out with price increases.

Fraser Papers Announces Paper Machine Downtime

Fraser Papers Inc. announced that it would take market-related downtime on the No. 6 paper machine at its East Papers operations, effective October 6, 2007, to manage inventory levels of uncoated groundwood papers. The Company expects the temporary shutdown to be two weeks in duration, dependent on market conditions.

Kruger to curtail production at two Quebec mills

Reported by - Financial Mirror –
The global paper and forest product industry's six-year-long decline in credit quality has continued in 2007,
says Moody's Investors Service in an industry update. During the year, industry participants have faced tighter liquidity conditions, a worsening slowdown in US housing construction, and, for producers in Canada, Brazil, and Chile, the negative effects of a strengthening in their national currencies.
Overall, Moody's expects the slide in credit quality to continue, particularly for North American and European based companies.
Positive rating pressure, however, is expected for the market pulp and packaging segments as prices remain strong.