Domtar recently released a marketing piece outlining why paper is here to stay. Paper is portable, personal , permanent, and effective for marketing. Even in the age of electronics, many surveys confirm paper – power of the written word – is more effective than email and internet marketing. The Domtar promotion also confirms print can not be blocked or defaulted to spam; and has a greater degree of credibility. All important documents are printed – birth certificate, drivers license, graduation diploma, bank documents, etc. no waiting for images to upload, no logging on or hoping for a good connection, no scrolling, and easier on the eyes.
Domtar is the largest producer of uncoated papers in North America and second largest in world. Paper.com sells all the Domtar grades and endorses use of paper. Come to www.paper.com for all your paper needs.
Some additional comments from USPS-
67% of consumers feel mail is more personal than the internet
60% of consumers that read catalogs were influenced to go visit web site
-Catalog recipients purchased 28% more items than website counter parts
Sunday, December 16, 2007
Neenah continues to go “green”
Neenah Paper has announced that six brands; Classic Crest, Classic Linen, Classic Laid, Classic Columns Classic Cotton, and Starwhite are now manufactured carbon neutral, reducing net greenhouse emissions associated with the paper making process. These grades are Green e-certified.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Kruger idles SC capacity
Kruger, one of the largest suppliers of supercalendered paper (SC), plans to shutter almost 215,000 tons of SC capacity. This affects the Trois Riviers mill (150.000 tons) and the Wayagamack mill (65,000 tons). The management sited weak Canadian dollar and increased energy cost
Salaries and Paper still greatest costs to Printers
According to PIA/GATF approximately 70% of printer’s sales dollars are used to pay for wages and paper. Energy also was sited as a growing cost concern. The industry sited increases of nearly 5.5% for paper; 3.4% for wages – 9% for health benefits; and energy rose over 6.5%.
Overall Printer Sales Increase for 2007
Although Printers that define themselves primarily as digital printers saw growth of nearly 10% year to date (9.4% over 2006) all mediums also witnessed growth. Namely, Sheetfed 1%; Heatset web 3%; and those printers that are combination of sheetfed/web 1.75%. These figures as reported from a survey done by Heidelberg.
Wednesday, December 12, 2007
Smart Papers looks to Environmentally Friendly Process
U.S. papermaker SMART Papers announced it has achieved Forest Stewardship Council (FSC) certification for its entire Genesis brand of premium uncoated printing and packaging papers. The full FSC certification of Genesis adds to the company’s growing line of FSC-certified papers, including those with post-consumer waste (PCW). SMART Papers, the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers, also said it now makes a majority of the Genesis papers with 100 percent
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
Cranes Announces Price Increase
Crane & Company announcing a price increase effective with orders shipping after January 2nd.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
More on Xerox High Yield Business Papers
As reported in past by Paper.com, Xerox has been successful in developing a high yield, groundwood containing business paper. The website markets this product as a high yield business paper AND an environmentally friendly grade. Because of the fiber used in this paper, 50% fewer trees are consumed (versus a regular 20pound bond); less chemicals, and less energy are also required. Ths exciting new ’green’ grade is available for immediate shipment from Paper.com.
Update on StoraEnso Capacity Reductions
In October, Paper.com announced StoraEnso would be reducing capacity of its paper making facilities. We recently learned, the company would be shuttering 500,000 tons of paper and 550,000 tons of pulp. They will permanently close the Summa mill – capacity of 415,000 tons of newsprint, uncoated magazine paper, and book paper – in first quarter of 2008. At StoraEnso’s Anjala mill, paper machine #2, which produces 155,000 of coated magazine paper, will stop production. This machine will be converted to manufacture book paper. Once this rebuild is complete, #1 paper machine at Anjala will be closed – eliminating 120,000 tons of book paper.
Wausau to Shutter Groveton, NH mill
As previously reported by Paper.com, Wausau will close its New Hampshire paper mill. The effective date has now been confirmed for December 31,2007. The mill had produced 105,000 tons per year of printing and writing grades, which was 28% of Wausau’s total system capacity.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Where have all the Readers Gone?
United States continues to show drop off in levels of readers in the past two decades. The National Endowment for the Arts (NEA) reports a general decline among teenage and adult readers. One cannot deny the increase in electronic media and devices are competing for the printed word. The association commented –
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
Paper mills haven’t kept pace with inflation
By Tom Stundza -- Purchasing
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Schweitzer-Mauduit to cut Capacity
Schweitzer-Mauduit will reduce paper production in both USA and France by shuttering four paper machines. The USA mill is located in Lee, MA and produced tipping paper for the cigarette industry. The company sited a reduction in demand for traditional tobacco related paper.
Tuesday, December 04, 2007
AbitibiBowater announces $60/tonne US newsprint hike in 1Q 2008
AS reported by RISI
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
US pulp, paper industry 3Q results
as reported by RISI
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
COATED FREESHEET UPDATE
Coated Free Sheet prices are rising, with the price on No. 3 60lb coated rising $5/ton in September, after a $30/ton increase in August. Prices continue to rise in October up another $20/ton. Chinese mills have done an met with success on antidumping duties as well as boosting the content of mechanical pulp in their paper and have shift almost all of their lost CFS tonnage to LWC. Also, the US Government recently ruled against the new tariffs for the coated Freesheet grades. as reported earlier in Paper.com news release. NewPage attempted to have these grades included under the antidumping ruling. NewPage is also suggesting that they will soon file antidumping charges against European coated producers. Anyones guess as to whether the price increase will now stick.
LinerBoard to Increase in Price
International Paper announced $60/ton hike on white top linerboard price, effective Dec. 3rd. We assume other producers such as PCA, Temple and Weyerhaeuser will announce an increase shortly.
Postal: Rates Hikes Will Follow Reform Bill
Catalogers and heavy mailers can breath a sigh of relief because officials state that postal rate increases will now follow the Postal Reform bill passed 11 months ago. The U.S. Postal Service's Board of Governors announced that future price increases will be tied to the Consumer Price Index (CPI), or rate of inflation, for mailing services that include First Class, Standard Mail, and periodicals.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
UNCOATED FREE SHEET UPDATE
Despite modest demand, for uncoated freesheet in USA, the $60/ton price hike initiative on offset grades is almost fully implemented, as November's $10/ton rise takes prices up $50/ton over the last two months. Trade book prices are up $80/ton in the last two months. October uncoated freesheet shipments dropped 2.4% from last year. Our trade sources suggest that the domestic pricing momentum in spot pricing on uncoated free sheet grades has moderated a somewhat in recent weeks. As noted in past news releases, supply reductions are keeping the
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
China Wins Recent Pricing Battle for Coated Papers
The American coated paper producers received a disappointing message in their fight against Chinese imports. Recall the breaking news Paper.com reported last month outlining initial victory with President Bush voting in favor of a large tariff (20-30%) on imported coated papers. NewPage, a large coated paper producer stated they and other manufacturers were materially 'injured’ with low priced, subsidized imports from countries such as China, South Korea and Indonesia. The Federal Trade Commission ruled that these imports did not cause harm and voted against the tariff. Furthermore, the World Trade Organization is reviewing whether these tariffs are legal. In the meanwhile, the newly imposed tariffs are canceled. The Commerce Department is now reviewing.
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