Narrative from our “Market Update” March 19, 2007

 

Happy Birthday

Jennifer Pirone - 11th

Ben Saleeby - 28th

 

 

 

 

 

 

 

 

 

 

 

 

 

Text Box: Brown Paper Reporter...
Text Box: www.brownpaper.com - 800.221.4386

April 2007

Happy Easter

The Laser MOCR market has eased since our last update. 

February’s UFS shipments dropped 6.6% when compared to the prior year with less    pre price increase purchases impacting shipment reporting.   Although producers are optimistic that recent industry announcements will result in future tightening, some are willing to meet competitive offers and adjust spot pricing to the market.

As the New Domtar begins to rationalize its 15 mills producing 5 million tons of UFS,   both IP and Boise prepare to take capacity out of their systems through conversion away from UFS production (Pensacola, FL & Wallula, WA).

Scheduled maintenance downtime at a number of North American mills may further aggravate supply.  It is evident that there will be fewer paper machines in the future and supply agreements are important to customers.

With many forces at play, potentially opposing one another at times, buyers and     producers are proceeding with caution.

Demand at the consumer level continues to be the key driver.

Please sign onto www.brownpaper.com to view our market update in its entirety. 

 

Major North American producers line up for $60/ton cut-size office paper price hike for May despite declining shipments

All the major North American producers of uncoated freesheet (UFS) have told customers they will hike the price of cut-size copy paper, by $60/ton, effective early May, contacts said last week.

The increase-the first on cut-size paper since mid-last year-was put in play when International   Paper, which with about 3.7 million tons of capacity is ranked the second largest producer in North America, said it would raise prices $60/ton with shipments beginning May 3rd.  Other major office paper producers including Domtar (the No. 1 producer), Boise Paper (No. 3) and Georgia -Pacific (No. 4) told their customers of $60/ton increases last week, sources said.

The $60/ton ($3cwt) increase is proposed to take effect with shipments on May 3rd for IP and Boise and May 7th  for Domtar and G-P.

Excerpt Pulp&PaperWeek  Apr. 9, 2007

A recent visit to Hillsboro finds good friends & business partners ;   Steve Patton, Susan Thompson, Bob Wilson, Mike Burdi, Jeff Satterfield, and Jeff Higley.   Thank you for a great visit...

 

Thank you