We, at Paper.com, continue to witness price increases – this time on all carbonless, thermal, and coated bonds effective with shipments after June 30th. Producers site cost pressures from energy, transportation, fiber, and chemicals. This coupled with lower capacity and strong demand.
Another interesting development, specific to our thermal papers, the US Department of Commerce recently announced preliminary ruling for ‘dumping charges’ against mills in China and Germany. The tariffs range from 7 to 33%; making imports a very expensive alternative.
These increases are in addition to our previously announced for all copy paper, effective June 16, of approximately $1.50/carton on 20lbs and $1.80 per carton on 24pound.
Tuesday, June 17, 2008
Too many Environmentally Friendly Certifications!@#$%&
In the late 1990’s the Forest Stewardship Council (FSC) and the Sustainable Forest Initiative (SFI) were introduced. Both are third party certification parties that review the entire supply chain for a fee. The certificate confirms the chain of custody for standards that address the fiber content and the forest, which was harvested. Certified papers are more expensive. The board conducts an audit of the entire process from the tree to the production through to the distributor or printer. Paper.com has many paper items that are FSC and SFI certified in the new Green Store, along with thousands of other environmentally friendly papers. Including paper with all the popular certifications such as Green Certification, Alternative energy Certification, Tree Free Certification, Chlorine Free Certification, 25-100% recycled Certification, Green Seal Certificate, etc.
Update on Uncoated Free Sheet
Notes from Deutsche Bank Research Paper
Following initial announcements by Boise, Domtar, International Paper and several other producers have come out with $60/ton price hikes on cut-size (copy paper) and offset rolls for June and July. This would be the second price hike in 2008 on uncoated grades - - - the result of
significant cost increases in energy, chemicals, transportation and fiber. However, demand remains lackluster. Shipments declined 9.6% vs March ’07 and preliminary data suggests that April was similarly weak (down -10% in the US).
Following initial announcements by Boise, Domtar, International Paper and several other producers have come out with $60/ton price hikes on cut-size (copy paper) and offset rolls for June and July. This would be the second price hike in 2008 on uncoated grades - - - the result of
significant cost increases in energy, chemicals, transportation and fiber. However, demand remains lackluster. Shipments declined 9.6% vs March ’07 and preliminary data suggests that April was similarly weak (down -10% in the US).
Update on Coated Groundwood
Notes from Deutsche Bank Research Paper
Most producers, both domestic and offshore, have announced coated
paper increases over the past several weeks. In the USA, Verso announced a $50/ton price increases for June 1 on light-weight coated (Publication) and other coated grades. AbitibiBowater and others have also announced hikes. In Japan, Nippon and Oji have both announced $100/ton hikes on export coated publication papers. Of note; US shipments rose an impressive 10.3% so far this year. With rising costs & weak US$, it creates an interesting
dynamic. There is growing evidence that demand is weakening. As we have noted, contacts in the printing distribution community are reporting that high paper prices and a slower economy are triggering reductions in some cataloging budgets. Late last week in announcing
25K of market downtime, NewPage pointed to rising inventories at a number of printers as well as slower demand from advertisers.
Most producers, both domestic and offshore, have announced coated
paper increases over the past several weeks. In the USA, Verso announced a $50/ton price increases for June 1 on light-weight coated (Publication) and other coated grades. AbitibiBowater and others have also announced hikes. In Japan, Nippon and Oji have both announced $100/ton hikes on export coated publication papers. Of note; US shipments rose an impressive 10.3% so far this year. With rising costs & weak US$, it creates an interesting
dynamic. There is growing evidence that demand is weakening. As we have noted, contacts in the printing distribution community are reporting that high paper prices and a slower economy are triggering reductions in some cataloging budgets. Late last week in announcing
25K of market downtime, NewPage pointed to rising inventories at a number of printers as well as slower demand from advertisers.
Update on Containerboard Grades
Notes from Deutsche Bank Research Paper
Flooding forced Weyerhaeuser to shut down is Cedar Rapids, IA, Containerboard mill (970,000/tpy). The impact is unclear -- the market is already tight with International Paper's Vicksburg mill outage. Major producers (70% of NA capacity) have announced a $55/ton price hike for July 1, and Smurfit and International Paper have now followed with a box hike.
In light of market dynamics, this is not a surprise. The big obstacle will be making prices "stick" in the wake of sluggish box demand. The cost story is mixed. While energy costs continue to
surge, rising export freight rates and problems finding shipping space have put pressure on OCC pricing since beginning of year.
Flooding forced Weyerhaeuser to shut down is Cedar Rapids, IA, Containerboard mill (970,000/tpy). The impact is unclear -- the market is already tight with International Paper's Vicksburg mill outage. Major producers (70% of NA capacity) have announced a $55/ton price hike for July 1, and Smurfit and International Paper have now followed with a box hike.
In light of market dynamics, this is not a surprise. The big obstacle will be making prices "stick" in the wake of sluggish box demand. The cost story is mixed. While energy costs continue to
surge, rising export freight rates and problems finding shipping space have put pressure on OCC pricing since beginning of year.
NewPage Taking Mill Down Time
NewPage Corp. will be taking approximately 25,000 tons of coated paper market-related downtime in June and July throughout its mill system. Several machines will be involved, and each will take advantage of specific times to complete planned maintenance and capital work.
Meanwhile, two paper machines at the Niagara, WI, facility that were slated to run until this fall will now be permanently closed on July 12. This reduces production by an additional 50,000 tons. The Niagara machines produce lightweight coated groundwood papers used in magazines and catalogs
Meanwhile, two paper machines at the Niagara, WI, facility that were slated to run until this fall will now be permanently closed on July 12. This reduces production by an additional 50,000 tons. The Niagara machines produce lightweight coated groundwood papers used in magazines and catalogs
Corporate Express Recommends Staples Bid
Corporate Express will recommend a $14.36 per share takeover bid by Staples Inc. to shareholders, according to the Associated Press. The decision reverses an earlier plan to merge with French competitor Lyreco. Including Corporate Express debt, the offer values the company at around $4.8 billion.
Potsdam Specialty Paper acquires MeadWestVaco’s NY mill
-- Converting Magazine,
MeadWestvaco Corp. (www.meadwestvaco.com) will sell the MWV Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper Inc. (PSPI). MWV Specialty Papers will continue to own and operate its Willow mill in South Lee, MA. The sale is expected to close in the third quarter of 2008.
PSPI is part of an investment holding company with offices in NY, Hong Kong, and Toronto, that has the financial resources to continue growing the business, expanding the product portfolio, investing in the people and facilities, and rapidly expanding the global reach of the business to new customers. PSPI will be part of a portfolio of global businesses that focus on niche products and markets in the value-added paper and coatings distribution business.
The mill’s current management team will remain in place following the sale, and all employees will transition to PSPI following the completion of the sale.
MeadWestvaco Corp. (www.meadwestvaco.com) will sell the MWV Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper Inc. (PSPI). MWV Specialty Papers will continue to own and operate its Willow mill in South Lee, MA. The sale is expected to close in the third quarter of 2008.
PSPI is part of an investment holding company with offices in NY, Hong Kong, and Toronto, that has the financial resources to continue growing the business, expanding the product portfolio, investing in the people and facilities, and rapidly expanding the global reach of the business to new customers. PSPI will be part of a portfolio of global businesses that focus on niche products and markets in the value-added paper and coatings distribution business.
The mill’s current management team will remain in place following the sale, and all employees will transition to PSPI following the completion of the sale.
Friday, June 06, 2008
Paper Mill Revived
In 2000, the Newton Falls Paper Mill was one of 600 Paper mills operating in the USA when it closed later that year. The mill's story was not to dissimilar to the shuttered mills in Great Barrington, MA., Augusta, GA., Lufkin, TX., Brewer, ME., and Deferiet, NY. - older equipment that could not produce product as economically as the newer, bigger machines. However, the story was quit different for the Newton Falls, NY facility - they found an investor (funding $20milllion to acquire the mill) and many of the workers continued to believe in the mill's survival - the mill reopened recently and is manufacturing 200 tons a day of coated paper. The plant runs 24 hours a day - 7 days a week supplying paper to such important companies as WalMart, and Jessica Seinfield's cookbook. With all the recent mill closures, it is nice to learn of a mill that survived!
Tuesday, June 03, 2008
Text and Cover Paper Prices also Increase
The small specialty mills, which produce Text and Cover grades such as Wausau, Neenah, Mohawk, and Smart, are all talking about a price increase. The biggest challenge is the advancement of energy cost. Recent announcements for pulp have also added pressure to producers for a price increase. Crane & Company did officially announce a price increase of 5-7% depending of the grade. In Crane’s case, they added the additional factor of spiraling costs for the cotton fiber. Crane’s announcement is for shipments after June 20th. Stay tuned for more changes. Paper.com is still able to ship at current pricing, until June 20th.
Who’s NOT on the Web?
I quote interesting stats from article in Internet Retailer magazine
>55 million US Adults do not use the Internet at all
>36million adults over 62 (74%) do not shop on line
>12 million US Internet users will not shop online for fear of supplying personal and financial information
>34 million US households that have dial up (59%) will not shop on line (21million that have broadband – will not shop online)
>17 million African Americans (59%) do not shop on line
>19 million Hispanics (58%) do not shop on line
Meanwhile, 2007 yielded a 22% growth in online sales to $165.9billion. Websites such as Paper.com that cater to niche products are forecasted to continue to grow.
>55 million US Adults do not use the Internet at all
>36million adults over 62 (74%) do not shop on line
>12 million US Internet users will not shop online for fear of supplying personal and financial information
>34 million US households that have dial up (59%) will not shop on line (21million that have broadband – will not shop online)
>17 million African Americans (59%) do not shop on line
>19 million Hispanics (58%) do not shop on line
Meanwhile, 2007 yielded a 22% growth in online sales to $165.9billion. Websites such as Paper.com that cater to niche products are forecasted to continue to grow.
Carriers all announce price Increases
Websites such as Paper.com continue to negotiate hard with truckers and carriers such as UPS, DHL, and FEDEX to hold prices – but all have announced increases due to gas prices. Even the United States Postal Service went up in May! Until the price at the pump stabilizes, we fear additional increases.
Paper.com thinks Green
As a leading online paper website, Paper.com recently introduced over 1000 items of environmentally friendly items to the site, and continue to add items daily. The company also has selected UPS as its primary carrier because of its ‘green’ position
Did you know-
>UPS was the first to begin testing for alternative fuels to power its fleet? The company now has 1600 Compressed Natural Gas (CNG), hybrid electric, and electric/propane powered vehicles on the road
>UPS uses cutting edge route optimization systems to determine most efficient routes, using less fuel.
>UPS leads the airline industry in deploying noise and emission reducing technologies.
>UPS uses innovative packaging which range from eco friendly to reusable boxes and envelopes
>UPS encourages all end users to electronically communicate for a paperless experience.
Did you know-
>UPS was the first to begin testing for alternative fuels to power its fleet? The company now has 1600 Compressed Natural Gas (CNG), hybrid electric, and electric/propane powered vehicles on the road
>UPS uses cutting edge route optimization systems to determine most efficient routes, using less fuel.
>UPS leads the airline industry in deploying noise and emission reducing technologies.
>UPS uses innovative packaging which range from eco friendly to reusable boxes and envelopes
>UPS encourages all end users to electronically communicate for a paperless experience.
Recent Printer Survey Results in
PIA/GAT reported on results from a recent survey-
23.8% of printers sited the most significant challenge for 2008 will be competition and pricing; followed by 16.8% stated inconsistent sales volume; and 15.7 claimed soft demand.
Meanwhile, printers that focused on direct mail printing grew in 2007 by 4.25%; Book printers saw growth of 2.27%; general commercial printers grew 2.09%; and quick printers enjoyed 0.73%
23.8% of printers sited the most significant challenge for 2008 will be competition and pricing; followed by 16.8% stated inconsistent sales volume; and 15.7 claimed soft demand.
Meanwhile, printers that focused on direct mail printing grew in 2007 by 4.25%; Book printers saw growth of 2.27%; general commercial printers grew 2.09%; and quick printers enjoyed 0.73%
The Dust is Settling at NewPage Paper Company
As a result of the acquisition of Stora Enso’s North American division to NewPage, much restructuring has occurred. The combined company has announced it has streamlined its coated web lines including the discounted Focus Plus, Nova Press, Advantage, Polaris Press, and CapriPress.
Thursday, May 29, 2008
Paper.com Continues as One of USA’s Largest Paper Websites
Paper executive, P. Scott Vallely and Internet expert, John Engel, the two co founders, recently announced that Paper.com LLC has been awarded top 500 Internet Retail sites in USA for 2007/08. The website, which exclusively markets paper items, has made the IR500 list every year since it was first published three years ago. With nearly 40,000 items on site, ranging from copy papers to photographic papers to scrapbook papers to handmade and exotic papers they are one of the biggest paper internet marketers. The two founders recently introduced an additional store to the site, which markets thousands of environmentally friendly papers. This new store joins the already popular stores that include Stationery, Office, School, Theme, Scrapbook, Seasonal, and Art Papers. The Paper.com site also has many links to educational Blogs, major paper mills, instruction on how to buy paper, and a conversion chart from grams to domestic weights. Paper.com is a primary online source for quality paper products.
Coated Groundwood Publication Prices Increase …. Again
As reported last month, prices rose $60/ton in April on most publication grades, and they rose
$75/ton for No. 5 40-lb offset rolls. The industry witnessed shipments advanced an impressive 10.3%. Recently, Verso has announced a $50/ton price increases on virtually all of its grades of coated free sheet, light-weight coated /publication and super-calendered (SC) papers. The increases are effective on orders shipping after July 1.
The timing of the increases would allow producers to capture the seasonally-strong late summer/autumn magazine & catalog season. The producers are all attempting to increase prices and recover rising costs.
As a side note, last week, Bloomingdales announced that it is eliminating its mail order catalog. Also, Abitibi-Bowater suggested it could add capacity to this market by converting more newsprint mills to coated paper mills.
$75/ton for No. 5 40-lb offset rolls. The industry witnessed shipments advanced an impressive 10.3%. Recently, Verso has announced a $50/ton price increases on virtually all of its grades of coated free sheet, light-weight coated /publication and super-calendered (SC) papers. The increases are effective on orders shipping after July 1.
The timing of the increases would allow producers to capture the seasonally-strong late summer/autumn magazine & catalog season. The producers are all attempting to increase prices and recover rising costs.
As a side note, last week, Bloomingdales announced that it is eliminating its mail order catalog. Also, Abitibi-Bowater suggested it could add capacity to this market by converting more newsprint mills to coated paper mills.
Recycling and the paper industry
Recycling certainly is not a new practice in the pulp and paper industry, driven by the recent need to be more sustainable. It has been going on for hundreds of years, and is generally practiced today in certain grade areas because it is economically feasible and attractive to do so, though some limited recycling is driven (or mandated) by environmental legislation in
various states and countries.
Today, very high percentages of waste paper streams are being recycled, especially in the Western world. In 2007, a record 56% of paper consumed in the U.S. was recovered for recycling, compared with 33.5% in 1990, according to the American Forest and Paper Association Paper recovery now averages approximately 360 pounds per person in the U.S.,
where the goal is 60% recovery by 2012.
In 2007, recovered fiber accounted for about 37% of the raw product used in U.S. paper mills, and 140 mills used recovered fiber exclusively, according to AF&PA figures. The environmental impact is evident in the fact that every ton of paper that is recovered saves 3.3 cubic yards of landfill space. Paper recycling activities in European countries are similar to those in the U.S., with some percentages being even higher. Although recycling has obvious environmental advantages, there are some drawbacks or developing problems that have to be considered. In regard to sustainability, for example, there is some irony in the fact that as higher percentages of waste papers and board are recovered, the more difficult and costly it becomes to establish and maintain operations based on these streams, and certain environmental tradeoffs also arise.
There also have been energy concerns in regard to some deinking/recycling processes versus corresponding virgin pulping processes. But these issues have not been resolved, and it is still unclear whether certain recycling operations might be less or more energy efficient than their virgin counterparts, and have a bigger or smaller carbon footprint.
various states and countries.
Today, very high percentages of waste paper streams are being recycled, especially in the Western world. In 2007, a record 56% of paper consumed in the U.S. was recovered for recycling, compared with 33.5% in 1990, according to the American Forest and Paper Association Paper recovery now averages approximately 360 pounds per person in the U.S.,
where the goal is 60% recovery by 2012.
In 2007, recovered fiber accounted for about 37% of the raw product used in U.S. paper mills, and 140 mills used recovered fiber exclusively, according to AF&PA figures. The environmental impact is evident in the fact that every ton of paper that is recovered saves 3.3 cubic yards of landfill space. Paper recycling activities in European countries are similar to those in the U.S., with some percentages being even higher. Although recycling has obvious environmental advantages, there are some drawbacks or developing problems that have to be considered. In regard to sustainability, for example, there is some irony in the fact that as higher percentages of waste papers and board are recovered, the more difficult and costly it becomes to establish and maintain operations based on these streams, and certain environmental tradeoffs also arise.
There also have been energy concerns in regard to some deinking/recycling processes versus corresponding virgin pulping processes. But these issues have not been resolved, and it is still unclear whether certain recycling operations might be less or more energy efficient than their virgin counterparts, and have a bigger or smaller carbon footprint.
AbitibiBowater announces third $60/ton newsprint hike of 2008
From RISI -
AbitibiBowater told customers it plans to increase the price of 30-lb (48.8 gm2) newsprint in North America by $60/tonne in the third quarter of 2008. It is the newsprint giant’s third price hike announcement of the year. If fully implemented it will take the rise in North American newsprint prices over just nine months to $180/ton.
As with AbitiBowater’s first and second quarter $60/ton hikes, this one will also be in $20 monthly increments. AbitibiBowater told customers in a May 16 letter that the company continued to experience serious cost inflation, especially in the areas of power, transportation and fiber, and was not yet generating sustainable results. This increase will bring 30 pound standard newsprint to $680/Mton.
AbitibiBowater told customers it plans to increase the price of 30-lb (48.8 gm2) newsprint in North America by $60/tonne in the third quarter of 2008. It is the newsprint giant’s third price hike announcement of the year. If fully implemented it will take the rise in North American newsprint prices over just nine months to $180/ton.
As with AbitiBowater’s first and second quarter $60/ton hikes, this one will also be in $20 monthly increments. AbitibiBowater told customers in a May 16 letter that the company continued to experience serious cost inflation, especially in the areas of power, transportation and fiber, and was not yet generating sustainable results. This increase will bring 30 pound standard newsprint to $680/Mton.
NBSK pulp prices are rising $20/metric ton
By Tom Stundza – Purchasing Magazine
Domtar informed North American customers this week that it will increase prices by $20/metric ton to $900 on northern bleached softwood kraft (NBSK) pulp, effective June 1. Purchasingdata.com’s monthly survey shows that May prices were stuck at $880 for the fifth consecutive month.
However, industry contacts tell the RISIinfo.com forest products online newsletter they have expected a price increase on NBSK because of a widely held belief that supplies would decline in the wake of maintenance downtime at many mills, as well as the recent idling of Pope & Talbot’s pulp mills. In addition, RISIinfo.com reports to its clients that most NBSK pulp is produced in Canada, where producers are facing margin pressures due to high costs for fiber, energy and a strong Canadian dollar.
Domtar informed North American customers this week that it will increase prices by $20/metric ton to $900 on northern bleached softwood kraft (NBSK) pulp, effective June 1. Purchasingdata.com’s monthly survey shows that May prices were stuck at $880 for the fifth consecutive month.
However, industry contacts tell the RISIinfo.com forest products online newsletter they have expected a price increase on NBSK because of a widely held belief that supplies would decline in the wake of maintenance downtime at many mills, as well as the recent idling of Pope & Talbot’s pulp mills. In addition, RISIinfo.com reports to its clients that most NBSK pulp is produced in Canada, where producers are facing margin pressures due to high costs for fiber, energy and a strong Canadian dollar.
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