As we previously reported, it is now confirmed that Smart Papers will build a 40MW co-generation system to produce both steam and electricity to operate the mill. This project will establish the site to be a zero process waste discharge facility and now generate carbon credits.
Paper.com markets the mill's premium cast coated, matte coated , as well as the uncoated text, cover, and writing grades. Many of these grades are Forest Stewardship Council (FSC) certified.
Wednesday, September 03, 2008
Magazine Industry Troubled
So far, 2008 has not been good to the magazine industry with an increase in postage, fuel, printing, ink, and paper costs. This, coupled with a recessionary economy. The hope is the recent olympics and a presidential campaign will assist a boost in readership. So far, pages and revenue as well as circulation are off significantly. To date, only 41 new magazines were launched (compared to 50 in 2007 and 72 in 2006).
This effects the paper industry in that consumption is also now down for publication coated grades.
This effects the paper industry in that consumption is also now down for publication coated grades.
American Eagle Mill continues to Grow
The American Eagle mill of Tyrone, PA, continues to enjoy sales growth. The mill is operated by a group of employees that purchased the closed facility from Westvacao in 2001. The plant now employs 265 workers and produces 90,000TPA of printing and converting grades. The product line includes 100% recycled, 50- 80pound, as well as 30% recycled reply card as well as envelope grades on two paper machines. The mill can produce 50-120pound uncoated grades.
Ordering Paper online Grows
International Paper's xpedx merchant division posted $1.4billion in ecommerce sales in 2007, for a 12% increase from 2006. Xpedx confirmed 5.8 million orders were conducted, or about half of the total xpedx sales.
Paper.com, with 40,000 items and nearly 60 distribution centers also outlined aggressive growth for 2007. Industry experts forecast this tend to continue.
Paper.com, with 40,000 items and nearly 60 distribution centers also outlined aggressive growth for 2007. Industry experts forecast this tend to continue.
Acacruz Plans Pulp Capacity Expansion in Brazil
Acacruz Celulose announced plans to build a pulp mill in Brazil. Management stated the completed facility will produce 1.4million tons of hardwood market pulp. The plant will be operational by 2015. Once complete, Aracruz will supply 25% of the world's market hardwood pulp, or, about 7 million tons per year.
Soporcel Installs new Cutsize Sheeter
Portuguese pulp and paper manufacturer, Soporcel, ordered two cut size converting and packaging lines from ECH Will and Pemco for the new paper mill under construction. The new equipment will produce 500,000TPA.
The Soporcel sheet is a worry-free copy paper that is one of the brightest on the market. Paper.com markets this sheet at approximately the same price as the lower brightness grades.
The Soporcel sheet is a worry-free copy paper that is one of the brightest on the market. Paper.com markets this sheet at approximately the same price as the lower brightness grades.
Climax Paper Plant Purchased
As previously announced, the purchase was completed for the Climax Paper facility in Loweville, NY last month for $6.9million. The mill produced heavy weight cover and converting grades on a cylinder paper machine.
MeadWestcavo Completes Sale of Specialty Papers Cedar Mill
MeadWestvaco Corporation announced it has completed the sale of its Specialty Papers Cedar mill in Potsdam, NY, to Potsdam Specialty Paper, Inc. (PSPI) on September 1, 2008. Terms of the agreement were not disclosed.
Tuesday, September 02, 2008
Kruger to Take Additional Downtime
Kruger announced it would take two more weeks of downtime on its 263,000 tons per year PM 4 at the Wayagamack mill starting September 1. The plans will remove approximately 10,000 tons of coated mechanical paper from the market.
Friday, August 29, 2008
White Birch to Increase US newsprint price by $60 per ton
North America's second largest newsprint producer, White Birch, told customers it would increase newsprint prices by $60/ton in the fourth quarter.
The hike follows an announcement by newsprint market leader AbitibiBowater last week that it would implement three monthly increases of $20/ton effective Oct. 1.
The new hike is the fourth $60/ton quarterly increase by North American newsprint producers this year.
Trade papers are reporting increased buyer resistance.
The hike follows an announcement by newsprint market leader AbitibiBowater last week that it would implement three monthly increases of $20/ton effective Oct. 1.
The new hike is the fourth $60/ton quarterly increase by North American newsprint producers this year.
Trade papers are reporting increased buyer resistance.
Wausau Paper Shut Down Otis Mill Machine
Wausau Paper will permanently shut down the #10 machine, one of the two paper machines, at the Otis Mill facility located in Jay, Maine on or prior to December 31, 2008 . Number 10 paper machine, with a capacity of 40,000 tons annually, presently serves the release liner market and a variety of smaller niche markets.
COATED GROUNDWOOD Market Update
The new coated market leader, NewPage, announced it will close Kimberly, WI mill by
Sept. 8. NewPage will also take two weeks of previously announced downtime at its Rumford, ME mill to rebuild a turbine.
Verso announced that it will take two weeks of downtime (13K/tons) in September at its Bucksport Mill in Maine.
UPM-Kymmene Corp. closed its two ground wood pulp and paper mills at Miramichi in Canada. The decision came almost eight years after UPM spent nearly $1 billion to buy the two mills
from Repap Inc.
The Finnish company closed the kraft mill in 2004, leaving 400 out of work.
Sept. 8. NewPage will also take two weeks of previously announced downtime at its Rumford, ME mill to rebuild a turbine.
Verso announced that it will take two weeks of downtime (13K/tons) in September at its Bucksport Mill in Maine.
UPM-Kymmene Corp. closed its two ground wood pulp and paper mills at Miramichi in Canada. The decision came almost eight years after UPM spent nearly $1 billion to buy the two mills
from Repap Inc.
The Finnish company closed the kraft mill in 2004, leaving 400 out of work.
Coated Freesheet Price Increase
North American coated freesheet (CFS) producers have told customers they will implement a $60/ton price increase on sheets and web grades effective October 1.
Suppliers that have announced include NewPage, Verso, Sappi, West Linn, Nippon and Appleton.
No mention, yet, for price increase for Groundwood coated publication products. US demand in the Groundwood market has not been as strong as free sheet.
Suppliers that have announced include NewPage, Verso, Sappi, West Linn, Nippon and Appleton.
No mention, yet, for price increase for Groundwood coated publication products. US demand in the Groundwood market has not been as strong as free sheet.
Falling Pulp Prices
Surprise Surprise, Pulp prices are finally coming down, after months of increases......
We hear reports that “spot” market discounts of 15-20% on pulp prices, especially for large orders.
The fundamentals have shifted - demand is slowing, shipment volumes have eased, and world producer inventories are up nearly 24%.
Faced with slow demand, many mills are reportedly pressing suppliers for downward price adjustments.
Pulp & Paper Week Index revised the July NBSK list price from $890/mton to
$885/mton and held it flat for August, largely ending pricing
momentum. Pulp prices appear to have reached a near-term peak.
We hear reports that “spot” market discounts of 15-20% on pulp prices, especially for large orders.
The fundamentals have shifted - demand is slowing, shipment volumes have eased, and world producer inventories are up nearly 24%.
Faced with slow demand, many mills are reportedly pressing suppliers for downward price adjustments.
Pulp & Paper Week Index revised the July NBSK list price from $890/mton to
$885/mton and held it flat for August, largely ending pricing
momentum. Pulp prices appear to have reached a near-term peak.
Newsprint prices boosted by $60/metric ton
by Tom Stundza
There has been an estimated 10.5% drop in U.S. newsprint consumption so far this year, yet list prices for the benchmark publication paper product are at $720/metric ton, a 12-year high. And now, the largest North American supplier, AbitibiBowater, has told customers the Montreal-based firm plans to raise prices by $20/month for the rest of the year, a move that would take newsprint prices to $780/metric ton in December. Newsprint is used to print newspapers, other publications and advertising material. North American newsprint shipments of 624,000 metric tons in June were 12.5% lower than a year ago and in line with an overall demand drop of 12.3%, the Pulp and Paper Products Council has reported to its members. Production at midyear was down 10.7% year-over-year and 9.2% year-to-date. Overseas shipments also were reported down so that North American mill inventories of 334,000 metric tons at the end of June were 26% lower than a year earlier. However, AbitibiBowater CEO David Paterson expects higher newsprint prices based on growth in newsprint exports. “Clearly, we'd expect the second half of 2008 to be better than the first half," Paterson tells reporters at the Reuters Paper Summit. Still, Paterson admits the company is facing resistance to price increases in North America and it is seeing an acceleration in demand declines due to its earlier pricing actions. Purchasingdata.com, for example, has yet to show transactions at $720 with the July average of $710 and the August average at $707.
There has been an estimated 10.5% drop in U.S. newsprint consumption so far this year, yet list prices for the benchmark publication paper product are at $720/metric ton, a 12-year high. And now, the largest North American supplier, AbitibiBowater, has told customers the Montreal-based firm plans to raise prices by $20/month for the rest of the year, a move that would take newsprint prices to $780/metric ton in December. Newsprint is used to print newspapers, other publications and advertising material. North American newsprint shipments of 624,000 metric tons in June were 12.5% lower than a year ago and in line with an overall demand drop of 12.3%, the Pulp and Paper Products Council has reported to its members. Production at midyear was down 10.7% year-over-year and 9.2% year-to-date. Overseas shipments also were reported down so that North American mill inventories of 334,000 metric tons at the end of June were 26% lower than a year earlier. However, AbitibiBowater CEO David Paterson expects higher newsprint prices based on growth in newsprint exports. “Clearly, we'd expect the second half of 2008 to be better than the first half," Paterson tells reporters at the Reuters Paper Summit. Still, Paterson admits the company is facing resistance to price increases in North America and it is seeing an acceleration in demand declines due to its earlier pricing actions. Purchasingdata.com, for example, has yet to show transactions at $720 with the July average of $710 and the August average at $707.
Wausau Paper Announces Grade Changes
Wausau Papers announced that the Astropaque grade line will be discontinued.
-They recommend purchasing alternatives such as
-Royal Resource
-Royal Compliments
-Exact Ice
-Exact Opaque
Paper.com has all these alternative grades in stock and ready for immediate shipment. The site also has inventory of the Astropaque items, which will be offered at a discount.
-They recommend purchasing alternatives such as
-Royal Resource
-Royal Compliments
-Exact Ice
-Exact Opaque
Paper.com has all these alternative grades in stock and ready for immediate shipment. The site also has inventory of the Astropaque items, which will be offered at a discount.
Paper Industry Recap
American Forest &Paper Association, the leading paper association, reported printing & writing data for July which confirmed the poor market conditions for coated paper shipments - Coated Free Sheet demand fell 8% and Groundwood coated - publication papers fell a over 19% . Uncoated paper demand was more in-line with trends, with Uncoated Freesheet shipments down only 4.3% and Uncoated Groundwood shipments up over 18%.
2008 Mid-Year Economic Report
by, Elisha Tropper, president, T3 Associates, Harrison, NY, USA
Elisha Tropper, an industry consultant and former label company owner
Energy Crunch: Oil prices are at all-time highs, impacting everything from fuel prices, home heating bills and commodity prices to global oil exploration, the development and expansion of alternative energy sources (solar, nuclear, agricultural), and a potpourri of political, military, ethnic, and religious conflicts.
China 2.0: The changing business face of China is significantly convoluting what for the past decade has been a relatively simple global business equation. Most visibly, rising production costs are impacting the market positioning of Chinese goods. These higher costs have arrived in the form of inflation (raw materials, utilities, freight, etc.), a reduction or elimination in the VAT rebate for exports, and a rash of new labor laws enacted to protect workers and ease international concerns of abuse, resulting in, by some estimates, an increase of as much as 40 percent of the labor costs. In addition, the no-longer fixed Chinese yuan has dramatically risen against the US dollar (10 percent in 2007 alone), resulting in lower export profits. The effects of these changes are beginning to affect the world economy, as lower cost nations are making inroads into the low-end manufacturing sectors, while the (relatively) shrinking margins of Chinese manufacturing is putting pressure on global manufacturers who based financial investments on higher profitability.
The Fed: The US Federal Reserve has succeeded in its effort to devalue the dollar, and is now striving to stave off the inflation that appears to be following. We could debate Fed decision making all day long, but the consequences, however unintended, of the current policies have damaged US credit abroad, slowed economic growth, and enabled foreign investment in US assets at a discount.
Credit Markets: The housing and credit market crunch has dramatically (and disproportionately) had an impact on just about everything financial from Wall Street to Main Street. For businesses, the credit approval process is tougher, loan covenants are stricter, and despite low interest rates, the capital markets are tighter then they’ve been in very long time.
Election Day: The upcoming US presidential election will have significant ramifications across the board, including the economy, taxes, and international diplomacy (or lack thereof). For example, it would be difficult to imagine any new administration, in the face of budget deficits and political pressure, capable of fending off a congressional effort to raise capital gains taxes, let alone personal income taxes (regardless of the potential damage such moves might make to the overall health of the economy).
There is no doubt that each of our businesses is and will continue to be affected in a very significant way by some combination of these events and pressures. The challenge for us is to harness an understanding of how these economic developments in their various permutations potentially impact our existing businesses, and plot the course of action that gives us the best opportunity to grow and thrive.
Elisha Tropper, an industry consultant and former label company owner
Energy Crunch: Oil prices are at all-time highs, impacting everything from fuel prices, home heating bills and commodity prices to global oil exploration, the development and expansion of alternative energy sources (solar, nuclear, agricultural), and a potpourri of political, military, ethnic, and religious conflicts.
China 2.0: The changing business face of China is significantly convoluting what for the past decade has been a relatively simple global business equation. Most visibly, rising production costs are impacting the market positioning of Chinese goods. These higher costs have arrived in the form of inflation (raw materials, utilities, freight, etc.), a reduction or elimination in the VAT rebate for exports, and a rash of new labor laws enacted to protect workers and ease international concerns of abuse, resulting in, by some estimates, an increase of as much as 40 percent of the labor costs. In addition, the no-longer fixed Chinese yuan has dramatically risen against the US dollar (10 percent in 2007 alone), resulting in lower export profits. The effects of these changes are beginning to affect the world economy, as lower cost nations are making inroads into the low-end manufacturing sectors, while the (relatively) shrinking margins of Chinese manufacturing is putting pressure on global manufacturers who based financial investments on higher profitability.
The Fed: The US Federal Reserve has succeeded in its effort to devalue the dollar, and is now striving to stave off the inflation that appears to be following. We could debate Fed decision making all day long, but the consequences, however unintended, of the current policies have damaged US credit abroad, slowed economic growth, and enabled foreign investment in US assets at a discount.
Credit Markets: The housing and credit market crunch has dramatically (and disproportionately) had an impact on just about everything financial from Wall Street to Main Street. For businesses, the credit approval process is tougher, loan covenants are stricter, and despite low interest rates, the capital markets are tighter then they’ve been in very long time.
Election Day: The upcoming US presidential election will have significant ramifications across the board, including the economy, taxes, and international diplomacy (or lack thereof). For example, it would be difficult to imagine any new administration, in the face of budget deficits and political pressure, capable of fending off a congressional effort to raise capital gains taxes, let alone personal income taxes (regardless of the potential damage such moves might make to the overall health of the economy).
There is no doubt that each of our businesses is and will continue to be affected in a very significant way by some combination of these events and pressures. The challenge for us is to harness an understanding of how these economic developments in their various permutations potentially impact our existing businesses, and plot the course of action that gives us the best opportunity to grow and thrive.
Friday, August 15, 2008
Digital Printing Continues to Improve
Many believe the future of printing is in the future of Digital equipment. The markets are segmented into several target markets, namely,
Prints – Photo, labels, decals
-Pages – Documents, direct mail, promotions
-Poster – display, signage
-Reply card – Promotion,
-Packaging – Flexible packaging.
Digital printing involved any reproduction process that does not use a static image carrier. Every page is a new impression.
The digital presses continue to improve in quality, speed, integration of finishing, and ability to use larger sheets. Color printing dominates this market. Digital pareses are the perfect choice for variable data and ability to personalize every page. Toner quality now allows for resolutions of up to 1200dpi at speeds of 40-110 pages or 200ppm if roll fed.
Paper.com recently focused on this market and markets literally every major mills grade. The site has most sheet sizes in stock and ready for immediate shipment.
Prints – Photo, labels, decals
-Pages – Documents, direct mail, promotions
-Poster – display, signage
-Reply card – Promotion,
-Packaging – Flexible packaging.
Digital printing involved any reproduction process that does not use a static image carrier. Every page is a new impression.
The digital presses continue to improve in quality, speed, integration of finishing, and ability to use larger sheets. Color printing dominates this market. Digital pareses are the perfect choice for variable data and ability to personalize every page. Toner quality now allows for resolutions of up to 1200dpi at speeds of 40-110 pages or 200ppm if roll fed.
Paper.com recently focused on this market and markets literally every major mills grade. The site has most sheet sizes in stock and ready for immediate shipment.
Paper …. The New Industry
The paper industry has undergone a transformation. In the past, mills ran to full capacity – no matter what ….. even if it meant reduced pricing of products. Today, inefficient mills and/or paper machines are being shuttered, or at least curtailed until market conditions improve. Operators are now controlling supply and inventory levels are lean. With the reduction in the US Dollar, USA producers can export paper successfully. Paper mills are shading non-strategic assets – forestlands, saw mills, packaging plants, etc. Producers are also reducing the products manufacturer – evaluating and only committing to the most profitable items. Yes, the paper industry has changed, and we continue to predict that paper prices will increase and end users will have fewer grades and producers to chose from.
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