Paper Market Update
Paper markets remain very tight with almost no exceptions, and this will only intensify as we near the busy fall printing season. Nine Dragon’s acquisition of Catalyst’s Rumford ME and Biron WI mills has been finalized. July brings with it price increases for newsprint, uncoated groundwood MF and SC, directory, and coated grades. In early August, we should see the U.S. DOC final determination for the tariffs imposed upon Canadian newsprint and uncoated groundwood producers.
Paper markets remain tight with almost no exceptions. China is investing in coated paper mills in the U.S. with Nine Dragon’s announced acquisition of Catalyst’s Rumford ME and Biron WI mills. June will make four consecutive months of newsprint price increases, with mill operating rates remaining in the 96% range. Watch for the U.S. DOC final determination, on August 2nd, for the tariffs imposed upon Canadian newsprint and uncoated groundwood producers…this carries with it significant implications.
There have been more price increase announcements since last month’s market update (see details below). Most markets are still tight, with newsprint grades leading the way. We now see unprecedented fragmenting of newsprint, machine finish high-bright, and directory grade prices due to the recently implemented tariffs on Canadian supply of these grades. This results from U.S. mills announcing marketdriven price increases, while Canadian producers are seeking larger increases due to the U.S. import duties being collected.