Wausau to Close New Hampshire Mill

Groveton, New Hampshire, paper mill closure will cut 105K of Uncoated Free Sheet capacity. Wausau Paper, based in Mosinee, Wis., employs 3,200 people at 11 facilities in seven states. It announced the Groveton mill closure when it released its third-quarter report.
Wausau's printing and writing division reported an operating loss of $1.3 million. Two years ago, Groveton Paperboard, which produced corrugated material and shared space with Wausau, shut down, leaving more than 100 workers stranded. Wausau was left to operate the building on its own, which added to its costs. The company will continue to produce printing and writing grades at its Brokaw, Wisconsin and Brainerd, Minnesota mills.
In 2001, other New Hampshire paper mills were shuttered including Berlin, Gorham and Contoocook.
Paper.com has all the popular Wausau products in stock and ready for immediate shipment.

Stora Enso Reduces capacity and administrative staff Stora Enso Reduces capacity and administrati

Management just announced that Stora Enso plans to cut magazine paper, newsprint and pulp capacity and reduce its administrative staff. Stora Enso’s intention is to close down permanently Summa Paper Mill and one magazine paper machine at Anjala Mill, and the pulp mills at Kemijärvi and Norrsundet. The closures will reduce annual capacity by 505 000 tons of newsprint and magazine paper and 550 000 tons of pulp. The number of personnel affected by these planned permanent mill closures will total about 1 400 - about 1 100 in Finland and about 300 in Sweden.
Stora Enso also plans to divest its mills at Kotka in Finland. The laminating paper business and the special coated magazine paper operations at Kotka are to be divested as Stora Enso continues to focus its portfolio.

Magazine Revenue Up In 2007

As reported by MediaDailyNews - Magazine Revenues are up 5.6%in the first three quarters of 2007, compared to the same period last year--topping $17.9 billion, according to figures from the Publishers Information Bureau. At the same time, advertising pages slipped 1% to 172,622, suggesting that increased demand is driving up prices for magazine ads. However, many magazines offer unannounced discounts on their reported "rate card" prices, making it difficult to know the true extent of price inflation.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.

Magazine Revenue Up In 2007

As reported by MediaDailyNews - Magazine Revenues are up 5.6%in the first three quarters of 2007, compared to the same period last year--topping $17.9 billion, according to figures from the Publishers Information Bureau. At the same time, advertising pages slipped 1% to 172,622, suggesting that increased demand is driving up prices for magazine ads. However, many magazines offer unannounced discounts on their reported "rate card" prices, making it difficult to know the true extent of price inflation.
The first three quarters saw big spending increases in the drugs and remedies category, which led revenue growth, although drugs and remedies slumped in the third quarter--possibly due to the political controversy surrounding direct-to-consumer advertising by pharmaceutical companies.

US Upholds Penalties on Asian Coated Free Sheet Imports

RISI reported that the US Department of Commerce (DOC) has upheld preliminary determinations in countervailing and antidumping duty investigations on coated free sheet imports from China, Indonesia, and Korea. Announcing its final determination today the DOC said it that Chinese, Indonesian, and Korean suppliers had sold coated freesheet in the USA at less than fair value -- by 21.12% to 99.65%, 8.63%, and 0.47% to 31.55% respectively. The DOC also determined that Chinese, Indonesian and Korean suppliers had received countervailable subsidies ranging from 7.40% to 44.25%, 22.48% and 0.00 to 1.46% respectively. "Subsidies in China keep out our exports and distort global trade flows.
The Administration will continue to vigorously enforce our countervailing duty and antidumping laws, and will take appropriate remedies based on the facts presented in each case," Import Administration Asst. Sec. David Spooner said in a statement.

South America BIG Supplier of Pulp

In the past several years, South America has moved into a position of being a major worldwide source of supply for pulp. The region has low cost fiber, as well as advanced research and development laboratories for plant genetics and seed development. Brazil in particular has moved into the forefront as a supplier of pulp. Projections indicate 5 of the top 10 market pulp producers will be located in South America. In 1986, Brazil produced 3.9million tons of pulp; by 2006 this figure grew to more than 11million tons.

Current State of Paper Markets

Report outlining curent state of Paper market by - Deutsche Bank - Equity Research


* NEWSPRINT
Despite more attempts to increase prices (Catalyst was out with a $25/tonne price hike for Oct. 1) newsprint prices continue to decline. SP will have another go at it, with a $30 increase slated for Nov 1. Tempec announced plans to indefinitely idle a 100K/mton machine at Kapuskasing, ON and Kruger is indefinitely idling an 80K/mtpy machine in Newfoundland. Kruger also announced plans to curtail 25,000 tonnes of newsprint capacity in Quebec next month. These are the first signs that 2nd and 3rd tier players are willing to act in front of ABY/BOW merger.

* COATED GROUNDWOOD
The cyclical sleeper? Prices rose $40/ton in October as the LWC market remains extremely tight, with customers scrambling for volume. This increase comes after a solid price increase in August, with No. 5 40-lb offset rolls prices rising $35/ton, and a $5-10/ton increase in September. Shipment volumes rose 3.6% y/y in September. Kruger's reversed its decision to shutdown two of its Quebec paper mills for two weeks in response to increased demand, but also announced a 3rd price hike of the year on LWC. We also understand that European mills are beginning to trim export volumes to the US.

* UNCOATED FREE SHEET
Tepid US demand has slightly hindered implementation the full $60/ton price hike. However, the full increase is expected to be fully implemented in the next few months, with $40 of the $60 offset hike already passed through this month. Trade book prices were estimated to be up $60-70/ton in September. September UFS shipments dropped 5.0% y/y, but supply reductions are keeping the market inreasonable

Top North American Uncoated Freesheet Producers

RISI just released some interesting data comparing top producers for Uncoated Woodfree papers. Notice Domtar’s rise to the top…
2007
1. Domtar 33.7% market share
2. International Paper 25.2%
3. Boise Cascade 10.5%
4. Georgia Pacific 7.2%%
5. Glatfelter 3.4%
Top 5 80.0% market Share

2001
1. International Paper 32.7% Market Share
2. Domtar 15.5%
3. Boise Cascade 10.1%
4. Willamette 9.7%
5. Weyerhaeuser 8.8%
Top 5 76.8% Market Share

1996
1. International Paper 14.9% market share
2. Georgia Pacific 14.0%
3. Champion International 7.9%
4. Boise Cascade 6.5%
5. Union Camp 6.2%
6. Willamette 6.0%
7. Weyerhaeuser 5.3%
8. Domtar 5.2%
Top 5 producers 49.5% market share

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.