Plastic is once again expected to increase is share of the market to 53% (in pounds) in 2010. However, this understates plastic’s true share, since less plastic is required than paper given it’s lighter weight.
The plastic market share will expand at a slower rate going forward, estimated at 3% per year. Highest growth markets for plastics are pet food applications, frozen foods, fruit beverages, and detergent markets.
Paper for packaging for 2005 was 11,830million tons estimated to grow to 12,030million tons for 2010; while plastic was 11,790million tons in 2005 growing to 13,630million tons in 2010.
Tuesday, June 12, 2007
Marketing Budgets Mixed for 2007
Web based marketing budgets are forecasted to be down for 2007 and Free Standing Inserts (FSI) up. FSI are those printed supplements found in the Sunday newspapers. Experts report that 2007 marketing budgets will only allow for 16% allocated to online marketing – this includes email, internet ads and online media spending. This is a big drop from the 23% share online marketing enjoyed as recently as 2006. We should note that overall marketing budgets for 2007 were forecasted to be cut in total by 11% from 2006.
Judgment is still out comparing “e-mail to p-mail”. The US Postal service has recently witnessed an improvement in bulk mail. Most experts agree that a combination of electronic advertising and print works best. Certainly, the past growth of online marketing had eaten into paper demand.
Paper.com, one of the largest web based marketer of paper in the world, exclusively promotes its products online.
Judgment is still out comparing “e-mail to p-mail”. The US Postal service has recently witnessed an improvement in bulk mail. Most experts agree that a combination of electronic advertising and print works best. Certainly, the past growth of online marketing had eaten into paper demand.
Paper.com, one of the largest web based marketer of paper in the world, exclusively promotes its products online.
Sunday, June 10, 2007
Newspapers enjoy Circulation Boost in Internet Age
In past, we have been exclusively reporting on USA Newspaper reading and consumption declines. However, Newspapers from around the world witnessed nearly a 2.5% increase in circulation in 2006 and growth in advertising revenue despite the raise in digital media. Sales have increased 9.5% in last 5 years while advertising revenues in paid dailies rose almost 4% according to World Association Newspapers (WAN).
When adding free dailies into the mix, global distribution grew slightly over 4.5% last year. North American is reported to be the only continent to show a decline in newspaper sales – having dropped 1.9% last year and over 5% in the last five years.
It was reported that over 515 million people in the world buy a newspaper every day with average readership estimated at over 1.4 billion people a day. China is the biggest newspaper market with almost 100 million copies sold daily, followed by India (88 million); USA (52.3 million); and Germany (21million).
When adding free dailies into the mix, global distribution grew slightly over 4.5% last year. North American is reported to be the only continent to show a decline in newspaper sales – having dropped 1.9% last year and over 5% in the last five years.
It was reported that over 515 million people in the world buy a newspaper every day with average readership estimated at over 1.4 billion people a day. China is the biggest newspaper market with almost 100 million copies sold daily, followed by India (88 million); USA (52.3 million); and Germany (21million).
Mohawk Continues to Lead Environmental Effort
Mohawk recently announced it would increase its purchase of wind energy electricity from 45million kWh to 60million kWh annually. This is an increase of 60% of all the energy in the consumption Mohawk uses in their production of paper. Mohawk promotes an entire line of products manufactured by non-polluting; wind energy electric produced from windmills in upstate New York and Pennsylvania. Mohawk’s division, Beckett Paper, in Ohio, recently introduced a grade line called Beckett Concept – made with ‘carbon neutral’, which means the grade is made 100% with renewal energy.
This grade, and many other environmentally friendly products, can be all found in the Environmental Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
This grade, and many other environmentally friendly products, can be all found in the Environmental Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
Appleton’s Xero / Form II Carbonless
Appleton continues to expand its product offerings of carbonless paper. The NCR Paper Xero brand is specially formulated for printing forms using high speed digital imaging equipment. Xero Form II is available in a wide range of sizes and colors. In addition, a print-side identifier on the ream edge reduces waste by eliminating paper loading errors.
This grade, and many other carbonless products, can be all found in the Office Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
This grade, and many other carbonless products, can be all found in the Office Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
Domtar Introduces Environmental Friendly Grade
Domtar Corporation now offers an extensive line of high quality environmentally friendly responsible papers called EarthChoice. The fibers used in this line are from forests that have been certified by Forest Stewardship Council and include post-consumer recycled pulp. Domtar’s EarthChoice is the only line of paper that is supported by Rainforest Alliance, WWF-Canada, and Forest Ethics.
This grade, and many other environmentally friendly products, can be all found in the Environmental Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
This grade, and many other environmentally friendly products, can be all found in the Environmental Store at Paper.com. Paper.com now has nearly 40,000 items in stock and ready for immediate shipment.
Manufacturing Edges Higher
U.S. manufacturing grew more rapidly last month as factory managers restocked depleted inventories. The Institute for Supply Management said its index of national factory activity rose to 55.0 last month from 54.7 in April. Wall Street economists had put the number at 54.0, according to a Reuters poll. A reading above 50 denotes growth. The paper industry typically tracks along the same pace as this index.
St. Francisville Mill Shut could revive US Coated Paper Markets
US paper analysts say Tembec's plan to indefinitely idle its 325,000 tons/yr St. Francisville, LA, coated paper mill next month
is positive for the sector and for major North American producers like NewPage, Stora Enso, Sappi, Verso and Bowater.
The facility is classified as a coated free sheet producer (CFS) because the recent replacement of its groundwood pulp line with a Kraft fiber line last year qualifies the product as coated free sheet. The capacity of the
mill's three machines represents 6.6% of US coated free sheet capacity, or 6.4% of coated groundwood production.
The pending capacity closure, together with countervailing duties and anti-dumping duties on US imports of Asian coated paper, could end recent weakness in coated paper markets and precipitate a potentially steep upturn
in the second half of the year, according to Lehman Bros. analyst Peter Ruschmeier.
is positive for the sector and for major North American producers like NewPage, Stora Enso, Sappi, Verso and Bowater.
The facility is classified as a coated free sheet producer (CFS) because the recent replacement of its groundwood pulp line with a Kraft fiber line last year qualifies the product as coated free sheet. The capacity of the
mill's three machines represents 6.6% of US coated free sheet capacity, or 6.4% of coated groundwood production.
The pending capacity closure, together with countervailing duties and anti-dumping duties on US imports of Asian coated paper, could end recent weakness in coated paper markets and precipitate a potentially steep upturn
in the second half of the year, according to Lehman Bros. analyst Peter Ruschmeier.
UPM announces Shutdown at its Miramichi Mill
UPM will close its Miramichi mill operations in August for up to one year. The paper mill is scheduled to close late in
August for 9 to 12 months. The Miramichi mill has two machines, producing lightweight coated paper,
with an annual capacity of 450,000 tonnes. Despite best efforts, Miramichihas not been able to turn its exports to the US profitable. The mill issuffering from unprecedented strength of the Canadian dollar. Also, marketprices for the coated magazine paper have been decreasing in North America.Demand for magazine grades in North America has been stable, but globally,there continues to be overcapacity in magazine paper, suppressing the salesprice.
In Europe, UPM has permanently ceased production of 530,000 tonnes ofcoated magazine paper during 2006-2007 to reduce the structuralovercapacity and improve profitability of the business. The Voikkaa mill inFinland was permanently closed and a production line in Jämsänkoski,Finland, was converted to another business area. UPM also closed 150,000tonnes of coated fine paper capacity at its Kymi mill, Finland last year."UPM's target is to improve the long-term profitability of the coated paper business. Paper.com has many of the major domestic and foriegn papers on their website.
August for 9 to 12 months. The Miramichi mill has two machines, producing lightweight coated paper,
with an annual capacity of 450,000 tonnes. Despite best efforts, Miramichihas not been able to turn its exports to the US profitable. The mill issuffering from unprecedented strength of the Canadian dollar. Also, marketprices for the coated magazine paper have been decreasing in North America.Demand for magazine grades in North America has been stable, but globally,there continues to be overcapacity in magazine paper, suppressing the salesprice.
In Europe, UPM has permanently ceased production of 530,000 tonnes ofcoated magazine paper during 2006-2007 to reduce the structuralovercapacity and improve profitability of the business. The Voikkaa mill inFinland was permanently closed and a production line in Jämsänkoski,Finland, was converted to another business area. UPM also closed 150,000tonnes of coated fine paper capacity at its Kymi mill, Finland last year."UPM's target is to improve the long-term profitability of the coated paper business. Paper.com has many of the major domestic and foriegn papers on their website.
Wednesday, May 30, 2007
Research Reveals Young Adults Read More Magazines, Not Less
MediaDailyNews - At a time when many assume that younger, tech-savvy people are turning their backs on print media, a highly regarded researcher has come up with evidence that young adults actually read more consumer magazines than older folks. The discovery is the result of new methodological research developed by McPheters & Co. to identify better ways of collecting information on the household incomes of magazine readers. "While analyzing data from the new test, it became apparent that younger readers reported reading more magazines than older readers," the company said.
Wood pulp near 22-year highs
North American wood pulp prices are closing in on their previous peaks set in the spring of 1995. Parsons & Whittemore, of Rye Brook, N.Y., plans to boost sales prices by $20/metric ton to $705 in June for southern bleached hardwood kraft (SBHK) pulp. Meanwhile, Tembec of Montreal and Pope & Talbot of Portland, Ore., have announced a $20 price increase to $830 for their northern bleached softwood (NBSK) grades.
Although a bit softer than USA market, hardwood markets are benefiting from reduced wood supply in Northern Europe. In
Europe, a strong Euro has allowed NA pulp producers to raise their export prices with little resistance from customers. Seasonal maintenance downtime has led to reduced inventories while some producers are speculating about a potential price hike in June.
Certain paper products are in strong demand so production of softwood and hardwood pulp has held fairly strong. One reason is that past lumber mill shutdowns have created a shortage of softwood pulp in some regions. And, as papermakers turn to more hardwood pulp for mixing, those prices also firm.
Although a bit softer than USA market, hardwood markets are benefiting from reduced wood supply in Northern Europe. In
Europe, a strong Euro has allowed NA pulp producers to raise their export prices with little resistance from customers. Seasonal maintenance downtime has led to reduced inventories while some producers are speculating about a potential price hike in June.
Certain paper products are in strong demand so production of softwood and hardwood pulp has held fairly strong. One reason is that past lumber mill shutdowns have created a shortage of softwood pulp in some regions. And, as papermakers turn to more hardwood pulp for mixing, those prices also firm.
Coated Market Appears Strong
Producers of coated Freesheet Papers have announced $50/ton price hikes effective immediately. The biggest driver is duties on Asian imports, which are limiting supply. Preliminary countervailing duties on Chinese, Indonesian and Korean imports are 18%, 21% and 2%, respectively. The next step is a Commerce Department ruling on antidumping duties, due out on
May 29th. Domestic shipments rose 10% in February ahead of possible duties on Asian imports. The coated Market has plateaued over the past six months.
May 29th. Domestic shipments rose 10% in February ahead of possible duties on Asian imports. The coated Market has plateaued over the past six months.
Some Paper markets are showing signs of a rebound in demand.
Demand in most markets has fallen from last year’s figures. The supply reductions from shuttered equipment and a weak US Dollar have held pricing relatively steady for Printing and Writing grades.
Virtually all corrugated box producers are reporting stronger volumes. Demand is strong in most offshore markets, particularly in Asian and Europe. Strong overseas demand coupled with a weak US dollar is clearly assisting many domestic paper mills
Virtually all corrugated box producers are reporting stronger volumes. Demand is strong in most offshore markets, particularly in Asian and Europe. Strong overseas demand coupled with a weak US dollar is clearly assisting many domestic paper mills
Forestweb May Pulp and Paper Price Indices Reflect Price Activity in Cut
Forestweb's monthly indices for pulp and paper reflect the price activity in pulp, packaging, and printing/writing
markets since the release of the prior report in April. The May indices indicate prices for communication papers rose, pulp and packaging remained steady, and publishing papers declined.
Forestweb's North American Communications Papers Index, static for the prior three months, increased 1.93%, reflecting rising prices in the cutsize free sheet market. The North American Publishing Papers Index declined for the tenth consecutive month indicating continuing price erosion in the mechanical publishing paper sector. Forestweb's North American Packaging Index remained unchanged for the fifth consecutive month. The North American Pulp Index was unchanged from April after new softwood prices were implemented earlier and hardwood prices were mostly steady.
markets since the release of the prior report in April. The May indices indicate prices for communication papers rose, pulp and packaging remained steady, and publishing papers declined.
Forestweb's North American Communications Papers Index, static for the prior three months, increased 1.93%, reflecting rising prices in the cutsize free sheet market. The North American Publishing Papers Index declined for the tenth consecutive month indicating continuing price erosion in the mechanical publishing paper sector. Forestweb's North American Packaging Index remained unchanged for the fifth consecutive month. The North American Pulp Index was unchanged from April after new softwood prices were implemented earlier and hardwood prices were mostly steady.
International Paper stops Paper Production at Pensacola mill
As reported in past, International Paper has finally stopped manufacturing uncoated freesheet (UFS) on PM No. 5 at its Cantonment mill in Pensacola, Fl. last week, and has begun the process of converting the 350,000 tons/yr machine
to lightweight unbleached kraft linerboard. The conversion is expected to last throughout the summer and should be
completed by the third quarter.
to lightweight unbleached kraft linerboard. The conversion is expected to last throughout the summer and should be
completed by the third quarter.
Monday, April 30, 2007
Top North American Producers of Uncoated Freesheet
Domtar 5million tons 33.7 market Share
International Paper 3.7million tons 25% Market Share
Boise Cascade 1.55million tons 10.5% Market Share
Glatfelter .5million tons 3.5% Market Share
Fraser Paper .45million tons 3% Market Share
Wausau Paper .4million tons 2.5% Market Share
Blue Ridge .3million tons 2% Market Share
Finch Pruyn .25million tons 1.5% Market Share
Cascades .15million tons 1% Market Share
Note: Paper.com markets all of these mill’s papers
International Paper 3.7million tons 25% Market Share
Boise Cascade 1.55million tons 10.5% Market Share
Glatfelter .5million tons 3.5% Market Share
Fraser Paper .45million tons 3% Market Share
Wausau Paper .4million tons 2.5% Market Share
Blue Ridge .3million tons 2% Market Share
Finch Pruyn .25million tons 1.5% Market Share
Cascades .15million tons 1% Market Share
Note: Paper.com markets all of these mill’s papers
Uncoated Freesheet Market in USA
From time to time, we offer a BLOG on defining a market-
The Uncoated Woodfree paper market is divided into three major product groups – reprographic (Copy papers), printing and converting (offset, envelope, forms, and tablet) and value added (text, cover and technical). The largest segment is the reprographics – 41.5% followed by offset 24%, envelope 11% forms 9% carbonless 5% tablet 2% text and cover 2.5% and technical 2%.
In the USA the commodity grades – reprographic and printing / converting – are generally produced on large paper machines and the plant produces its own pulp. The smaller, older mills that produce the value added grades usually do not produce pulp (rather they buy it in the open market) and are located in the Northeast and upper Midwest.
The market, as a whole has decreased from its peak in 1999 of nearly 15million tons to current 2006 of 12.5million tons – or a decline of 15.5% or 2.3million tons. The decrease is primarily attributed to cannibalism from electronic information replacing paper. We forecast an additional decrease this year with International Paper shuttering equipment as well as others such as Domtar continuing to rationalize production.
Although USA is now witnessing additional imported papers (rose 24% to 525,000 last year – 4% of USA capacity) with the reduction of USA capacity – we feel pricing could begin to increase during 2007.
Paper.com sells all major mill’s uncoated papers – from copy papers to text and cover.
The Uncoated Woodfree paper market is divided into three major product groups – reprographic (Copy papers), printing and converting (offset, envelope, forms, and tablet) and value added (text, cover and technical). The largest segment is the reprographics – 41.5% followed by offset 24%, envelope 11% forms 9% carbonless 5% tablet 2% text and cover 2.5% and technical 2%.
In the USA the commodity grades – reprographic and printing / converting – are generally produced on large paper machines and the plant produces its own pulp. The smaller, older mills that produce the value added grades usually do not produce pulp (rather they buy it in the open market) and are located in the Northeast and upper Midwest.
The market, as a whole has decreased from its peak in 1999 of nearly 15million tons to current 2006 of 12.5million tons – or a decline of 15.5% or 2.3million tons. The decrease is primarily attributed to cannibalism from electronic information replacing paper. We forecast an additional decrease this year with International Paper shuttering equipment as well as others such as Domtar continuing to rationalize production.
Although USA is now witnessing additional imported papers (rose 24% to 525,000 last year – 4% of USA capacity) with the reduction of USA capacity – we feel pricing could begin to increase during 2007.
Paper.com sells all major mill’s uncoated papers – from copy papers to text and cover.
Employment Levels for Printers on Decline
PIA/GATC Print Market Tracking reported US Printing industry lost more than 3000 jobs last year. This was a result of more than 980 plants that closed down in 2006.
Container Board Producers announce Price Increase
Packaging Corporation of America announced a $40/ton containerboard hike, effective May 15th. We would not be surprised to see other industry players to make similar announcements in the coming days. Although a $40/ton winter price
hike floundered on the back of weak box demand, global containerboard markets are very tight (and prices are rising, often
well above domestic prices) and we have received several reports in the past week that domestic box volumes are strengthening & mill backlogs are tightening. Containerboard producers are also struggling under the weight of increased raw material costs.
hike floundered on the back of weak box demand, global containerboard markets are very tight (and prices are rising, often
well above domestic prices) and we have received several reports in the past week that domestic box volumes are strengthening & mill backlogs are tightening. Containerboard producers are also struggling under the weight of increased raw material costs.
Mohawk Continues to Grow with Text and Cover
Since its purchase of International Papers fine papers division in 2005, Mohawk’s sales have reached $300 million in the first
quarter, nearly tripling sales from before the International Paper deal. Since 2005, Mohawk has more than doubled its sales staff from 26 to 59 people. Paper.com markets these products to companies that use Mohawk to publish their annual reports, books, catalogs, magazines, posters and letterheads.
quarter, nearly tripling sales from before the International Paper deal. Since 2005, Mohawk has more than doubled its sales staff from 26 to 59 people. Paper.com markets these products to companies that use Mohawk to publish their annual reports, books, catalogs, magazines, posters and letterheads.
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