Paper Market Update
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.
Prices are escalating in March and April for just about all grades of printing & writing papers. We can attribute this to ti ght markets, CVD and ADD tariffs recently slapped upon Canadian producers of uncoated groundwood grades, and lower demand and rising costs forcing unprofitable mills to remove excess capacity in large quantities. Current prices for some paper grades are already 10% above year-ago prices. Anti-dumping duties have been added to the CVDs for uncoated groundwood produced in Canada and exported into the U.S. Pulp prices continued rising to unprecedented levels in March.
Paper markets have become increasingly difficult to navigate since last month. All paper markets are still very tight with many mill machines on allocation and not taking new business beyond current commitments. Order lead times have increased out to as much as 16 weeks for some grades. There are a number of factors playing out at the same time in the paper and transportation industries creating a supply and demand imbalance and chronic shortages and late paper for most grades Paper prices continue to escalate…we’ve included the updated summary in the report.