Corner Brook Pulp and Paper in western Newfoundland will take the mill down for two weeks.
The company has been effected by the poor demand resulting from unfavorable market conditions, the loss of some orders, the high Canadian dollar, and the low price of newsprint.
Tuesday, October 13, 2009
Containerboard still down
The major producers of containerboard grades continued to offer an additional discount price of $10-20/ ton for September shipments in an effort to stimulate demand. Prices have been sliding steadily since May. Short of the economy improving, allowing for folks to start buying products that 'go into boxes', - many look for the two market leaders, International Paper and Smurfit, to shutter capacity to balance the excessive supply.
Magazines need to Think Outside the Box
MediaWeek recently published an article on the depressed advertising revenue for magazines. They stated the obvious, that is, no one needs reminding that 2009 was a horrible year for print. Overall, the industry was headed to shed nearly twenty percent of its advertising pages, although some are seeing their pages plummet by as much as 50 percent. MediaWeek, like many others, believe pages are unlikely to return to levels titles enjoyed in the past. To stay afloat, magazines are aggressively seeking new initiatives of growing revenue outside the traditional ad-based model. Fewer advertising pages generally lead to fewer editorial pages which yields less paper demanded; this is especially bad for coated groundwood publication grades.
Sun Times to now be Sold
The bankruptcy court approved the sale of the Sun-Times Media Group to STMG Holdings LLC, led by James Tyree.
Friday, October 09, 2009
Kruger Elects to keep one Machine Running
Coy Paper had reported that Kruger was to shutter two coated publication paper machines; however, management just announced they will continue one of two coated paper lines at Trois-Rivieres. Annual production will shrink from 130,000 to 75,000 metric tons. The remaining paper machine and the pulp plant will shut down indefinitely later this month.
European Survey Reports Paper Shipments Down
As an update to an earlier Coy Paper release on current news of the Pulp and Paper Industry, The Association of European Fine Paper Manufacturers, CEPIFINE, reported on August uncoated and coated woodfree papers and the news reflected a decline in shipments. The coated woodfree shipments in August fell nearly 21% to 576,000 metric tons. On the uncoated woodfree grades, these deliveries declined 20% to 411,000 metric tons.
Wednesday, October 07, 2009
Pulp and Coated Publication Up, Containerboard Down
As Coy Paper reported earlier, the price of pulp continues to increase and all the majors are standing firm on their price increases and capacity slowdowns. Also, discounts are slowly being reduced.
Recently, the producers of groundwood containing coated publication papers are working with end users toward a reduction in discounts by as much as $60-$80/ton (must feel good after witnessing a decreased price level nearly every month so far in 2009). Demand increased better than 15% in September (vs. August) and the paper market for these grades are ‘only’ down 8% vs. this time last year.
Meanwhile, containerboard demand still remains somewhat weak and pricing remains under pressure. The real key in near term is will the big producers (International Paper and Smurfit) reduce capacity to control supply.
Recently, the producers of groundwood containing coated publication papers are working with end users toward a reduction in discounts by as much as $60-$80/ton (must feel good after witnessing a decreased price level nearly every month so far in 2009). Demand increased better than 15% in September (vs. August) and the paper market for these grades are ‘only’ down 8% vs. this time last year.
Meanwhile, containerboard demand still remains somewhat weak and pricing remains under pressure. The real key in near term is will the big producers (International Paper and Smurfit) reduce capacity to control supply.
Another Publisher Files for Chapter 11
Questex, who publishes 23 trade publications as well as 150 digital publications filed for bankruptcy protection
Tuesday, October 06, 2009
Printing Shipments Continue Downward Trend
Commercial printers reported on their August shipments and commented they continue to trend downward. The August shipments dropped to $7.3Billion, down 11.5% or $950 million, the steepest dollar decline so far in 2009 (vs. last year).
Conde Nast closes Four Publications
Conde Nast announced that they would close four magazines: Gourmet, Cookie, Elegant Bride and Modern Bride because the advertising pages dropped significantly, The company reported that Gourmet was down 46%, Cookie’s down 19.5%, Elegant Bride down 32.5% and Modern Bride down 21.5%. Remaining Brides magazine will increase frequency to monthly and Bon Appétit will continue. Condé Nast is keeping alive Bon Appétit, an in-house rival of Gourmet.
Gourmet's circulation is 950,000 and Bon Appétit's is 1,300,000.
Gourmet's circulation is 950,000 and Bon Appétit's is 1,300,000.
Most Recent Pulp Price Increase...Done Deal
Pulp inventories continue to be low, China's appetite for pulp is on the increase, and supply is in balance (with several producers shuttering equipment) - the October pulp increase of $30/MT for HBSK and SBSK is being being paid.
Worldcolor to End Production at Olive Branch Plant
Worldcolor (previously called Quebecor World) will stop production at their Olive Branch, MS printing facility by end of this year , 2009. Two other divisions will take over the production upon closure.
Monday, October 05, 2009
Flexible Packaging Demand to Increase
Excerpts from Converting Magazine
World demand for converted flexible packaging is forecast to increase 3.5 % annually to over 19 million metric tons in 2013. Factors contributing to this rising demand will include growth in food and beverage production, which represents the largest market by far. In addition, cost, performance and source reduction advantages, will continue to favor flexible packaging products over their rigid counterparts.
Gains will be limited by the mature state of the packaging industry in developed areas such as the US, Western Europe and Japan, where the main markets for flexible packaging but are well-established.
The fastest increases will occur in the world's developing regions. Asia, Latin America, Eastern Europe and the Africa/Mideast region will all outpace the global average.
Some of the best gains are expected in China, which has surpassed Japan to become the world's second largest converted flexible packaging market (behind the US); and India, which will benefit from strong growth in domestic output and consumer product markets. The fastest world growth (5.2%/year) is forecast for the Asia - Pacific region. Rapid gains are also expected in Russia and Indonesia, which will benefit from greater investment in state-of-the-art manufacturing equipment, resulting in improved product quality.
Plastic films, which account for almost three-quarters of global converted flexible packaging material demand, will continue to make inroads at the expense of paper and aluminum foil.
World demand for converted flexible packaging is forecast to increase 3.5 % annually to over 19 million metric tons in 2013. Factors contributing to this rising demand will include growth in food and beverage production, which represents the largest market by far. In addition, cost, performance and source reduction advantages, will continue to favor flexible packaging products over their rigid counterparts.
Gains will be limited by the mature state of the packaging industry in developed areas such as the US, Western Europe and Japan, where the main markets for flexible packaging but are well-established.
The fastest increases will occur in the world's developing regions. Asia, Latin America, Eastern Europe and the Africa/Mideast region will all outpace the global average.
Some of the best gains are expected in China, which has surpassed Japan to become the world's second largest converted flexible packaging market (behind the US); and India, which will benefit from strong growth in domestic output and consumer product markets. The fastest world growth (5.2%/year) is forecast for the Asia - Pacific region. Rapid gains are also expected in Russia and Indonesia, which will benefit from greater investment in state-of-the-art manufacturing equipment, resulting in improved product quality.
Plastic films, which account for almost three-quarters of global converted flexible packaging material demand, will continue to make inroads at the expense of paper and aluminum foil.
Ahlstrom Joins in with Price Increases
Ahlstrom is beginning to inform customers about price increases on all of its specialty paper grades, a result of rising costs for raw material and energy.
Ahlstrom's Specialty Papers segment has production sites in Brazil (Jacarei), France (Bousbecque, La Gere, Pont-Audemer, Rottersac, Saint-Severin and Stenay), Germany (Osnabrück and Altenkirchen), Finland (Kauttua), Italy (Turin) and USA (West Carrollton).
Ahlstrom's Specialty Papers segment has production sites in Brazil (Jacarei), France (Bousbecque, La Gere, Pont-Audemer, Rottersac, Saint-Severin and Stenay), Germany (Osnabrück and Altenkirchen), Finland (Kauttua), Italy (Turin) and USA (West Carrollton).
Apple to Introduce Tablet ... it will Create a Challenge to Publications
Apple is aiming to redefine print using the Apple Tablet – just as they did with the computer, cel phone and MP3. The Apple Computer device is expected to be ready for sale in January. If the Tablet becomes popular for digital magazines, publishers will be correct in fearing a faster decline in printed material.
Friday, October 02, 2009
USA Paper Shipments Continue to Fall
From a AF&PA Report -
A new report by the American Forest & Paper Association presents final data for the U.S. paper and paperboard industry for 2008 and shows total production of these products declined 4.9% to 88.4 million tons, the lowest production amount in 15 years.
“These results follow a modest 0.8% decline in 2007, and reflect the severity of the recession in 2008 on the paper and paperboard industry in the United States,” said AF&PA Chief Economist Dr. Stanley Lancey.
The report shows the peak year for paper and paperboard production in the United States was 1999 when production totaled 98.6 million tons.
Ironically, worldwide economic forces suppressed imports to and boosted exports from the U.S. during 2008, according to Dr. Lancey. The report shows imports of paper and paperboard declined 9.5% in 2008 while exports increased 6.1% to an all-time high of 15.5 million tons.
A new report by the American Forest & Paper Association presents final data for the U.S. paper and paperboard industry for 2008 and shows total production of these products declined 4.9% to 88.4 million tons, the lowest production amount in 15 years.
“These results follow a modest 0.8% decline in 2007, and reflect the severity of the recession in 2008 on the paper and paperboard industry in the United States,” said AF&PA Chief Economist Dr. Stanley Lancey.
The report shows the peak year for paper and paperboard production in the United States was 1999 when production totaled 98.6 million tons.
Ironically, worldwide economic forces suppressed imports to and boosted exports from the U.S. during 2008, according to Dr. Lancey. The report shows imports of paper and paperboard declined 9.5% in 2008 while exports increased 6.1% to an all-time high of 15.5 million tons.
Europe Reports on Downward Paper Demand
Report from CEPIPRINT
(tonnage figures are in metric)
The Association of European Publication Paper Products, reported a decline across all European paper in demand and shipments in August.
• Coated Mechanical demand dropped 16.5% to 527,000 tons, shipments down 18% to 635,000 tons. Volume to US/Australia down, with growth to Japan.
• SC-Magazine demand dropped 10% to 300,000 tons, shipments down 16.5% to 346,000 tons. Exports down 43% to 46,000 tons, due to US/Australia/Brazil.
• Uncoated mechanical demand fell 18% to 150,000 tons, shipments down by 22% to 183,000 tons.
(tonnage figures are in metric)
The Association of European Publication Paper Products, reported a decline across all European paper in demand and shipments in August.
• Coated Mechanical demand dropped 16.5% to 527,000 tons, shipments down 18% to 635,000 tons. Volume to US/Australia down, with growth to Japan.
• SC-Magazine demand dropped 10% to 300,000 tons, shipments down 16.5% to 346,000 tons. Exports down 43% to 46,000 tons, due to US/Australia/Brazil.
• Uncoated mechanical demand fell 18% to 150,000 tons, shipments down by 22% to 183,000 tons.
Advertisings Spending Still on the Decline
Spending on advertising across 27 countries dropped nearly 6% in the second quarter, (note; less than 1Q09 drop of 8%).
Some highlights-
Asia spending +2.2%
North America down 15.9%
Europe down 9.1%.
Marketers in automobile and financial services cut back most, while retailers, consumer product and health care increased slightly.
Some highlights-
Asia spending +2.2%
North America down 15.9%
Europe down 9.1%.
Marketers in automobile and financial services cut back most, while retailers, consumer product and health care increased slightly.
Thursday, October 01, 2009
Nielson Online Reports top Sites for News
Each month Nielson reports on the top sites, by unique visitors, for learning about current events. Note, only three newspaper websites hit the top ten list – NY Times, Tribune, and Gannett.
August results-
Yahoo! News -- 43,469,000 -- 7%
CNN Digital Network -- 38,024,000 -- (-2%)
MSNBC Digital Network -- 36,450,000 -- (-30%)
AOL News -- 26,309,000 -- 14%
NYTimes.com -- 17,183,000 -- (-13%)
Fox News Digital Network -- 16,999,000 --- 22%
Tribune Newspapers -- 15,801,000 -- (-10%)
ABCNEWS Digital Network -- 13,873,000 -- 4%
Google News -- 13,442,000 -- 11%
Gannett Newspapers/Newspaper Division -- 12,981,000 -- (-10%)
August results-
Yahoo! News -- 43,469,000 -- 7%
CNN Digital Network -- 38,024,000 -- (-2%)
MSNBC Digital Network -- 36,450,000 -- (-30%)
AOL News -- 26,309,000 -- 14%
NYTimes.com -- 17,183,000 -- (-13%)
Fox News Digital Network -- 16,999,000 --- 22%
Tribune Newspapers -- 15,801,000 -- (-10%)
ABCNEWS Digital Network -- 13,873,000 -- 4%
Google News -- 13,442,000 -- 11%
Gannett Newspapers/Newspaper Division -- 12,981,000 -- (-10%)
Are Printed Catalogs a Goner?
Most of the successful catalogers now compliment their respective printed publications with an on line e-ecommerce website. In today’s challenging economy, with distribution and printing on the rise, many are now focusing on the electronic editions. Websites allow for efficient speed, accessibility and overall ease over the printed catalog. Biggest benefit with online catalog is the large audience capability to expose potential end users. The web allows for timely data and updates on both current product offerings and new items. The online catalog also provides side-by-side comparisons and 24/7 satisfaction.
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