The index annually recognizes consumer magazines with a recent track record of standout advertising revenue and page performance.
1The Economist
2Elle
3People
4Women’s Health
5EveryDay – Rachael Ray
6Real Simple
7Men’s Health
8Family Circle
9Vogue
10New York
Tuesday, March 31, 2009
Containerboard Demand Down
Economists at RISI Inc. forest products information service, have forecast as much as 1.8 million tons of containerboard papers are out of service this quarter. However, supply remains in excess because of the recent 40% plunge in U.S. linerboard export production, which has caused extra tonnage into the domestic marketplace.
Another Chicago Newspaper Files for Bankruptcy
Sun-Times Media Group , the parent of the Chicago Sun-Times and 59 other Chicago-area newspapers, after burning through cash at more than $5 million a month--filed for Chapter 11 bankruptcy protection. Recall, in December, we reported on Chicago Tribune parent Tribune Co. straining under nearly $13 billion in debt--filed for protection while it restructures.
Monday, March 30, 2009
Linerboard and Corrugated Medium Price Declines
Price declines for containerboard continue to increase.
Containerboard sales prices are in a steep decline and most buyers expect this trend will continue in April because box consumption has been reduced substantially.
Buyers report that linerboard spot sales prices averaged $540/ton this month, down $15 from the month before, while corrugated medium also has dropped $15 to $530. Early orders for April deliveries put these prices at $500-$510 before customer-specific discounts.
In fact, analyst George L. Staphos at Merrill Lynch & Co. says some April linerboard prices could be as low as $470-480/ton after volume discounts in the competitive Northeast region --and only slightly higher in the Midwest. He adds that corrugating medium transaction prices in the East Coast and Midwest may be heading for $440-$470 in coming weeks.
Containerboard sales prices are in a steep decline and most buyers expect this trend will continue in April because box consumption has been reduced substantially.
Buyers report that linerboard spot sales prices averaged $540/ton this month, down $15 from the month before, while corrugated medium also has dropped $15 to $530. Early orders for April deliveries put these prices at $500-$510 before customer-specific discounts.
In fact, analyst George L. Staphos at Merrill Lynch & Co. says some April linerboard prices could be as low as $470-480/ton after volume discounts in the competitive Northeast region --and only slightly higher in the Midwest. He adds that corrugating medium transaction prices in the East Coast and Midwest may be heading for $440-$470 in coming weeks.
Monday, March 23, 2009
U.S. Paper, Paperboard Capacity Falls - First Word from “Paper Week”
Source: Manufacturing.Net
NEW YORK (AP) -- U.S. paper and paperboard capacity fell 0.8 percent last year as 41 manufacturing facilities were permanently closed, according to the American Forest & Paper Association.
The group, which put domestic capacity at 96.3 million tons, also said it expects total paper and paperboard capacity to decline 1.8 percent this year and then expand 0.3 percent in each of the subsequent two years.
In 2007, 38 manufacturing facilities were permanently closed, AF&PA said.
In addition to last year's permanent closures, additional facilities in 2008 were idled, meaning they could be restarted.
The survey's results underscore the continued shrinkage in the industry, a sector whose capacity has fallen 7.3 percent since 2000.
AF&PA President, Donna Harman, speaking at the start of the trade group's annual "Paper Week" meeting in New York, said the industry has been hit "with a double whammy," the housing market collapsing and credit markets drying up.
NEW YORK (AP) -- U.S. paper and paperboard capacity fell 0.8 percent last year as 41 manufacturing facilities were permanently closed, according to the American Forest & Paper Association.
The group, which put domestic capacity at 96.3 million tons, also said it expects total paper and paperboard capacity to decline 1.8 percent this year and then expand 0.3 percent in each of the subsequent two years.
In 2007, 38 manufacturing facilities were permanently closed, AF&PA said.
In addition to last year's permanent closures, additional facilities in 2008 were idled, meaning they could be restarted.
The survey's results underscore the continued shrinkage in the industry, a sector whose capacity has fallen 7.3 percent since 2000.
AF&PA President, Donna Harman, speaking at the start of the trade group's annual "Paper Week" meeting in New York, said the industry has been hit "with a double whammy," the housing market collapsing and credit markets drying up.
Publications Papers Down
So far, for the month of March, publication coated groundwood grades fell $40/ton to $880/ton. Many buyers report discounts of $60/ton. Consumption continues to be depressed - both magazine and catalogue demand are down. We understand shipments in February were down 36.5% vs. February 2008. Printers such as RRDonnelly and Quad have shuttered presses. Paper manufactures continue managing downtime to avoid more aggressive price deterioration. Veros/100,000tons NewPage/150,000tons; AbitibiBowater/14,000 tons.
Containerboard Declines
List prices for 42lbs linerboard and medium have been reported to have declined $15/ton so far in March - after decreasing $10/ton in February. February 2009 shipments fell 10.5% from February 2008.
Kruger Shuts Down Machine
The number 4 machine at Corner Brook Pulp and Paper has shutdown. Kruger made the announcement earlier this month citing economic recession. The number 4 machine is expected to be back in production on May 17th.
How to Buy Paper?
We are often asked about the most efficient means for procuring paper for commercial printing jobs. Basic purchasing routes remain, online, such as Paper.com; from your printer, along with printing and distribution; a paper broker – who negotiates on your behalf; or directly from the paper mill. Typically, the way one purchases paper depends on company size and volume of paper consumed. Buying paper directly from the mill is reserved for only the big consumers with massive volume. Smaller buyers are better buying from the printer, and the mid size buyers, from a paper broker. In any case, given today’s economy, do your diligence that the supplier is financially stable.
Important attributes on paper procurement include-
-Be sure you are correct in all the specifications, size, weight, finish, shade, and quality.
-Double confirm the quantity to be ordered, the press date, and required timing for paper to arrive. Typically, the supplier will allow a ‘last date of change’.
-Compare many ‘like’ papers and specify the exact paper grade to be used for your job – you may request a trial to print to confirm quality and printing
-Do not buy from a seconds house – price is economical – but generally, there is something wrong with the quality of the paper – might even be a little as the shade or brightness not consistent throughout the order.
-If you have a choice, confirm a source close to printer – shipping factors into the price of paper.
-Negotiate the best price – paper is a commodity AND review pricing often.
-Try not to sign a contract that might commit you long term
-Remember also, you can save money in many ways with paper, reduce basis weight, smaller finished piece, lower paper quality
-Lastly, do not assume environmentally friendly papers are more expensive.
Important attributes on paper procurement include-
-Be sure you are correct in all the specifications, size, weight, finish, shade, and quality.
-Double confirm the quantity to be ordered, the press date, and required timing for paper to arrive. Typically, the supplier will allow a ‘last date of change’.
-Compare many ‘like’ papers and specify the exact paper grade to be used for your job – you may request a trial to print to confirm quality and printing
-Do not buy from a seconds house – price is economical – but generally, there is something wrong with the quality of the paper – might even be a little as the shade or brightness not consistent throughout the order.
-If you have a choice, confirm a source close to printer – shipping factors into the price of paper.
-Negotiate the best price – paper is a commodity AND review pricing often.
-Try not to sign a contract that might commit you long term
-Remember also, you can save money in many ways with paper, reduce basis weight, smaller finished piece, lower paper quality
-Lastly, do not assume environmentally friendly papers are more expensive.
Norske Takes additional Downtime at Saugbrugs Mill
Norske Skog announced that it will take downtime at its Saugbrugs mill in Norway at the end of this month. . The Saugbrugs mill has three paper machines producing 555,000 TPA supercalendered paper. The week long shutdown will remove 11.000 tons of paper from the market
Americans go Green
KMWorld recently produced an article on being environmentally ‘friendly’. They produced a few ‘fun facts’
>If USA office worker reduces paper consumption 10% this is equivalent of 540,000 tons per year.
>Average worker prints 10,000 pages and wastes 1410 pages
>Average wasted page is $0.06
>A company with 500 employees spends $42,000 on wasted printing each year
>Only 49% of workers admit to recycling at the office
>Every ton of recycled paper saves 3.3 cubic yards of landfill.
>If USA office worker reduces paper consumption 10% this is equivalent of 540,000 tons per year.
>Average worker prints 10,000 pages and wastes 1410 pages
>Average wasted page is $0.06
>A company with 500 employees spends $42,000 on wasted printing each year
>Only 49% of workers admit to recycling at the office
>Every ton of recycled paper saves 3.3 cubic yards of landfill.
Wednesday, March 18, 2009
Update for Uncoated Free Papers
Demand continues to fall off for uncoated free sheets (business papers and offset) while prices decline $10-25/ton in February. The markets are becoming over supplied (coated producers are 'lifting' the coater and marketing uncoated paper) making the market for cutsize very competitive. Shipments from traditional uncoated mills fell nearly 20% for both January and again in February versus a year ago.
Some mills continue downtime
Domtar - Plymonth, NC 295,oootons
SMART - Hamilton, Ohio shutter 2 paper machines - 48,000tons
On the other hand, Portucel reports they will EXPAND USA sales once new 500,000TPA machine starts up this summer.
Some mills continue downtime
Domtar - Plymonth, NC 295,oootons
SMART - Hamilton, Ohio shutter 2 paper machines - 48,000tons
On the other hand, Portucel reports they will EXPAND USA sales once new 500,000TPA machine starts up this summer.
Pulp Markets Continue to Decline
The price and demand for pulp continued to decrease for the seventh straight month.
>NBSK list price fell $25 to $650 (down from high of $885/MTon - August 2008)
>Hardwood - NBHK down $30 to $565; SBHK now $560
>BEK list is $585/MTon
Note, Pulp today is traded at large discounts off above list prices. Recent report outlined
>NBSK under $500/MTon
>NBHL & SBHK @$400/MTon
>BEK @$400/MTon
Even with massive downtime, inventory was near record high of over 5Million tons in November.
>NBSK list price fell $25 to $650 (down from high of $885/MTon - August 2008)
>Hardwood - NBHK down $30 to $565; SBHK now $560
>BEK list is $585/MTon
Note, Pulp today is traded at large discounts off above list prices. Recent report outlined
>NBSK under $500/MTon
>NBHL & SBHK @$400/MTon
>BEK @$400/MTon
Even with massive downtime, inventory was near record high of over 5Million tons in November.
Monday, March 16, 2009
Paper Industry Continues to Worsen
February yielded yet another poor month for the pulp and paper industry with ALL categories sharply down. Uncoated Free shipments were down nearly 20%; Coated Free fell almost 24%;coated mechanical publication declined 37%; and, uncoated groundwood 31%. Producers continue to show discipline by taking down time to match lower demand. Many now think permanent capacity closures will begin to take place. Meanwhile, Uncoated Freesheet prices fell $10-25/ton in February.
White Birch again Announces more Down Time
Last week, we announced White Birch taking capacity out of the market, and this week, management has reported on more....
White Birch Paper Company said it would take market related downtime at its Stadacona L.P. Division in Quebec, Canada. The shutdown will begin March 20 and continue through April 6, resulting in 30,000 metric tons of reduced newsprint production. White Birch has approximately 1.25 million tons of uncoated groundwood production capacity.
White Birch Paper Company said it would take market related downtime at its Stadacona L.P. Division in Quebec, Canada. The shutdown will begin March 20 and continue through April 6, resulting in 30,000 metric tons of reduced newsprint production. White Birch has approximately 1.25 million tons of uncoated groundwood production capacity.
Wednesday, March 11, 2009
Coy Paper Marketing Stop Light for Window and In-Store Promotions
The Coy Paper Company LLC has joined forces with Crusader Paper to market the popular Stop Light grade they sell under the Block Out brand. The laminated grade has two premium outer coated gloss sheets and a middle ply which has a carbon dye – providing a 100% opaque paper. This makes the grade an ideal candidate when both sides are printed or for window printed promotions when ‘no show through’ is required. The product is produced out of Crusader’s modern plant and is stocked in both .008 and .011 mil. The product is an immediate success for grocery stores, fast food restaurants, and convenience shops. The Block Out grade is also marketed by Coy Paper for playing card stock.
India Still Growing in Paper Consumption
Although most of the world is currently witnessing a reduction in paper consumption, India is showing growth. The demand for this growing market, is posting 10% per capita growth in 2008. This yields per capita of 8.3kg for 2008 versus 7.5kg for 2007. Meanwhile, the production is estimated to grow 7-8% over the next decade.
Paper.com Expands Box Offerings
The popular Paper.com website has recently expanded its product offerings of packaging material.
This line compliments its nearly 40,000 printing and writing items. The site now markets approximately 2000 packaging items, but has over 10,000 items available which includes thousands of stock boxes and mailers, hundreds of sizes of mailing bags, mailing tubes, tapes, poly bags, and more!
This line compliments its nearly 40,000 printing and writing items. The site now markets approximately 2000 packaging items, but has over 10,000 items available which includes thousands of stock boxes and mailers, hundreds of sizes of mailing bags, mailing tubes, tapes, poly bags, and more!
AbitibiBowater Shutters more Production
AbitibiBowater Inc. announced plans to shut down its Thorold mill in Ontario for two weeks. Closure of the 454,000 ton/yr newsprint mill. The mill will close on March 14 and resume operations on March 31.
NewPage to Idle Rumford Mill
NewPage will temporarily shut down its mill in Rumford, Maine from March 22 to March 29, removing approximately 10,250 tons of coated paper production from the market. Rumford has three paper machines that produce 533,000 tons/yr of freesheet and mechanical grades.
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