Sunday, August 05, 2007

What’s the Best Way to Print Digital Photos?

AARP recently researched several methods of printing Digital Photos. They compared Photo Labs, Online Services, Home Printers, and Kiosks. The results illustrated that Photo Labs produced the best quality and uploading photos to a web service (online) that mails prints is a breeze. When speed counts, the home printer is best. When it comes to price Kodakgallery.com makes 4x6 prints for 15 cents and Shutterfly.com are as low as 12 cents apiece. Most lab prints cost 12 to 20 cents apiece. Home prints, if many are printed, are also reasonably priced.
Paper.com has all the major photo papers for home printing of digital prints.

Freedonia Group Releases new study on USA Commercial Printers

Study Highlights:
-Revenues for the US commercial printing industry, which includes pre-press and printing services on a job order basis, are expected to increase 1.3 percent per year to $82 billion in 2011.

-Growth in commercial printing revenues will be driven by ongoing technological changes that make it easier to create higher quality and more customized prints at a faster rate. Gains will also be aided by ongoing adjustments in print production in response to changing consumer preferences, particularly in terms of cost, timing and sizes of print runs.

-Digital printing is projected to achieve the strongest gains through 2011 because of the process' lower cost, quick turnaround and ease of customization for short printing runs.

FiberMark acquired another Paper Producer

The specialty paper market recently witnessed a consolidation when FiberMark purchased Permalin Products and PermaFiber. Permalin produces more than 30 product lines for book publishing and tag / label markets. PermaFiber provides wet strength products to the laundry and drycleaner markets• The specialty paper market recently witnessed a consolidation when FiberMark purchased Permalin Products and PermaFiber. Permalin produces more than 30 product lines for book publishing and tag / label markets. PermaFiber provides wet strength products to the laundry and drycleaner markets.

New York Times Newspaper reduces size … again

Effective with August 6 printing, the New York Times Newspaper will reduce the width of its pages by an inch and a half. The newspaper will be 12” – which is becoming the new standard for the industry. The move will reduce expenses.

International Paper Company Orders new Paper Machine

International Paper ordered a new Voith Paper machine for it’s plant in Brazil. The machine will be operational in 2009 and will produce 200,000 tons of uncoated Woodfree paper.

Bowater to Curtail Paper Machine

Bowater will indefinitely shut down a paper machine that produces 88,000 tons of book paper. The machine was in Dolbeau, QC.

Neenah Paper introduces new Products

The Renew grade line called Classic Linen introduced new finishes that have a textured finish. The company also released a Solar White, double thick cover weight for the Eames Grade line.
Paper.com has the entire line of Eames and Classic Linen.

Tuesday, July 31, 2007

Domtar Announced permanent Equipment curtailment

Domtar will permanently close its mill in Gatineau, Quebec as well as the converting center in Ottawa, Ontario. Domtar also announced it will shutter two paper making machines at its Woodland mill in Baileyville, Maine and another machine in Port Edwards, Wisconsin. Total closures amount to 284,000 tons of annual capacity.
Paper.com, one on the largest online paper marketers, has all the Domtar items available for shipment.

Office paper prices near $1000/ton

From Purchasing Magazine
Cut-size office paper prices have increased by 9% since April to an average $998/ton this month, the highest monthly price in 11 years. Its last peak was $1000, in January 1996.

Paper market data resource RISI.com says the $60/ton increase in copier paper began with shipments in early May and was implemented over time by the largest four North American producers: Domtar, International Paper, Boise Cascade and Georgia-Pacific. There still are some sales at discount, causing the marketplace average to miss the mills’ goal.

The price hike supports a recent Purchasing survey of office products buyers, more than 90% of whom said they were either "very concerned" or "somewhat concerned" about paper prices this year. And more than three-quarters of those polled reported paper price increases in the past year.
Statistics from the Pulp and Paper Products Council shows that North American uncoated Freesheet paper demand is down 5.1% through May (latest available data) at 4.99 million metric tons. So, whether any additional cut-size office paper price hikes will be attempted to offset pulp cost pressures in paper production is unclear, suggests Merrill Lynch analyst Ross Gilardi. He points out that “the U.S. paper industry continues to feel pressure from lower cost Southern hemisphere competition.”


Bowater Stockholders Overwhelmingly Approve Merger With Abitibi-ConsolidatedBowater Incorporated announced that its stockholders have approved the pro

Bowater Incorporated announced that its stockholders have approved the proposed merger with Abitibi-Consolidated Inc. Approximately 70% of Bowater's outstanding shares were cast in favor of the merger.
Abitibi-Consolidated Inc. also announced that its shareholders have voted in favor of the combination of Abitibi-Consolidated and Bowater Incorporated.

Tuesday, July 24, 2007

Scrapbook Papers continue to Grow

Paper.com, a pioneer in marketing scrapbook and craft papers on the internet, continues to add to their line of papers for this important market. A recent survey was conducted by Alcone Marketing on this segment
-32million people scrapbook in the United States
-2004 confirmed over $2.55billion was spent on scrapbook materials
-At least 1person scrapbooks in 25% of North American families
-The hobby is most popular in Western States – 25-30% of all households
-Most scrapbookers are college educated women, 30-50 years old
-Most work - over half work full time
-39% has been scrapbooking for at least 5 years
-75% spends at least $25/month
-Average scrapbooker has $1853 worth of gear
-75% of the scrapbookers have a dedicated room in the house for this hobby
Also noted in research
-32.2 million mom’s were on line in 2005 – forecasted to be 36.6million by 2010
-This is 18.7% of all Internet users
Contact Paper.com customer service department for a copy of a survey that Paper.com conducted with 2500 of our end users for most popular paper’s used.

Digital Printing Continues to Grow

Digital printing has enjoyed continued growth as end users are beginning to demand personalized promotions and fast turn around. Offset continues to be the most popular choice for longer runs, and does offer better reprographics. In a recent article published by Digital Publishing Solutions, Paper.com's co-founder P. Scott Vallely reported on the importance of picking the correct paper for the intended use. Offset and desktop copy papers generally are not acceptable for Digital Printers. Vallely confirmed several sheets, all marketing by www.paper.com. Some papers mentioned included Xerox’s Digital Color, NewPage’s Sterling, Finch, Prynn’s Digital Opaque, Mohawk’s Color Copy, Neenah’s Classic Crest, and SMART’s Kromekote laser. Paper.com has over 40,000 papers in stock and ready for immediate shipment.

Forest Industry Forecasted to continue to Consolidate

In 2006, the forest industry witnessed nearly 300 mergers and acquisitions worth almost $26billion. Most notable was Domtar’s acquisition of Weyerhaeuser for $3.3billion – creating the largest uncoated paper producer in North America. Other large consolidations included Cascades 50% ownership of Norampac ($476million) and West Fraser’s purchase of timberlands from International Paper for $325million. The average deal size grew from $90million in 2003 to $169millin in 2006. Industry experts believe this will continue as the industry faces both increased pressure from imports and digital communication, as well as advanced energy, transportation, fiber, and chemical costs. Thus far in 2007, $9billion worth of deals have been reported.

UNCOATED FREE SHEET UPDATE

Cut-size(business papers) prices rose $40/ton in May; and another $20 in June. Spot prices appear to be up by a slightly greater amount - merchants report continued customer resistance to hikes. Our conversations suggests a market which is balanced, but certainly not tight. While cut-size remains healthy (driven by supply cuts), substitution from Uncoated Groundwood Grades are keeping pressure on offset rolls. Paper.com has a large selection of cutsize papers available for immedaite shipment.

Market pulp Update

We believe more Canadian capacity closures will be announced . With the most recent uptick in the Canadian Dollar, it will force another round of capacity closures - we think there are at least 5-6 mills "on the bubble". Despite the highest US$ prices in over a decade for pulp, we believe that a number of Canadian mills are at/below cash cost. Wood supply issues in Europe appear to be starting to narrow the softwood/hardwood spread. Aracruz has recently announced a worldwide $20/ton hike on eucalyptus hardwood.

Paper Industry Employment Decreases

Paper mill employment fell from 17,200 in 1990 to 10,200 in 2003, according to a study done for the Maine Future Forest Economy Project.
The drop has continued in the past four years, with the work force now standing at an estimated 7,000 workers.

North American printing and writing paper shipments fall in May

Overall printing and writing paper shipments in North America at 2.24 million tons in May were 60,000 tons or 3.1% lower than
a year ago, according to data from the Pulp and Paper Products Council. The year-to-date reduction was 189,000 tons or 1.7%.
Mill operating rates declined in three of the four major grade segments, the exception being coated paper, which gained four percentage points to 92% on a shipments-to-capacity basis.
The decline in North American printing and writing paper demand at 5.6% was more than three times the 1.4% decline in production in May. However a 16.4% drop in imports and a 24.1% rise in offshore exports offset the imbalance. Overall mill inventories at the end of May were 2,000 tons lower than at the end of April and 296,000 tons higher than a year ago.

Corrugated Medium Supply Tight

Corrugated Medium is the wavy, middle fluting material in containers. Typical basis weights are 16, 18, 22, 26, 31, 33, 36, and 40, although the standard, and most popular, is 26 pound (pounds/1000square feet) The capacity has shrunk in recent years yielding a relatively tight supply to the market. Many of the higher cost mill locations have closed. The first round of closures started in 2005, totaling 790,000 tons (total market is 10,400,000 tons). Mill locations held by International paper, Smurfit, Menasha, Groveton, and Longview have been affected. Production for 2007 is expected to raise only 1% for 2007. Prices have remained stable. Again, market tightness is a result of curtained supply side NOT demand.

Corrugated Demand is Low

Corrugated box shipments at midyear remain almost 2% lower than a year ago and, even though they appear to have improved by 0.9% in June over May, they still aren’t strong enough yet to provide any traction for the proposed $40/ton price increase on 42-lb linerboard in the East and a $50/ton increase in the West. Statistics show that U.S. containerboard production was flat in June at 2.919 million tons. But, containerboard inventories dropped below 2.4 million tons, according to Fiber Box Association and American Forest and Paper Association .

Box plant inventories reached their lowest level since June 2006 (equal to 3.2 weeks of supply) and that “may be enough to give some teeth to producers' price hike,” writes analyst Claudia Shank of J.P. Morgan Securities in New York. However, other analysts say that that box demand needs to demonstrate positive momentum before a linerboard price hike can gain traction, and demand in June wasn’t robust enough.

Newsprint Market Update

July prices were reportedly down another $5/ton. With the Canadian Dollar at 30+yr highs, a growing percentage of mills are below "cash cost". With pressure from inputs costs and the rising Canadian Dollar, we do not think the current prices can be sustained at current low levels. Most North American producers will support the $25/ton September price hike.