Paper Market Update
After Resolute removed 200,000 tons of coated capacity at Catawba, the coated groundwood (CGW) market has tightened through November with order lead times extending out to 12 weeks. CGW Roto and lightweight #5 grades are exceptionally tight as the impact of Verso’s last CGW roto machine closure in December 2016 is realized. Coated freesheet is not as tight and paper is readily available. The uncoated freesheet market continues to show weakness, with operating rates lower than expected. The uncoated groundwood market is much weaker than the coated market, with European supercalendered (SC) imports gaining market share. The newsprint market is stable, with recent capacity removals boosting operating rates.
Download the complete Paper Market Update for August 2017
Producers announced a July 1 $40/ton price increase on all coated and SC grades. According to RISI Paper Trader, rising mill costs including pulp prices, mill shuts and a sudden weakness in the U.S. dollar are collectively supporting the July $40/ton price increase announced for coated paper grades. SC markets are weak with paper readily available. The uncoated freesheet market is weak with paper readily available. Newsprint pricing is stable as capacity has recently been removed (White Birch, RFP, Kruger). Pulp
prices are at an all-time high while most paper prices are at 10 year lows.
Download the complete Paper Market Update for July 2017
Most producers have announced a July 1 $2/cwt price increase on all coated grades in sheets and rolls. Some producers have announced the same increase for SC grades. The tariffs on Canadian SC grades into the US have been eliminated for Catalyst and reduced to 5.87% for Irving, while the tariffs still in place for Port Hawkesbury and Resolute are under appeal for further review by the US DOC. SC markets are weak. Resolute will exit the Coated #4 market by shutting their PM2. Over-supply in the uncoated freesheet market has caused low operating rates. Newsprint pricing is stable as capacity has recently been removed.
Download the complete Paper Market Update for June 2017
Newsprint producers in the North American West announced at$20/tonne price increase for June 1, while East pricing remains unchanged. The tariffs on Canadian SC grades into the US have been eliminated for Catalyst and reduced to 5.87% for Irving, while the tariffs for Port Hawkesbury and Resolute are under appeal for further review by the US DOC. SC markets are weak. Both the coated freesheet and coated groundwood markets suffer from over-supply and resulting market weakness. Demand for uncoated freesheet has been less than expected and operating rates have fallen.
Download the complete Paper Market Update for May 2017
Newsprint shipments down, enhanced by publisher inventory reductions. Expect the newsprint decline to stabilize when inventories are depleted and as recent capacity closures are implemented (Kruger and RFP). RISI is predicting mill cost inflation for all grades in H2 2017 and 2018, causing mill closures and stronger markets in 2018. Shipments of supercalendered paper are down 26% YTD. Sappi’s converting a coated freesheet machine to packaging grades in 2018.
Download the complete Paper Market Update for April 2017
No real changes this month…the coated paper markets are weak and paper is readily available. Uncoated freesheet operating rates are stable at low 90% range. The market for supercalendered grades has softened with increased pressures from coated groundwood availability. Newsprint continues its decline; however, newsprint shipments to commercial printers, which represents 30% of total newsprint demand in North America…were up 9.2% yr/yr in January.
Download the complete Paper Market Update for March 2017