1. In December, we mentioned International
Paper’s decision to close a mill in Courtland,
Alabama and commented on the effect the
capacity reduction could have on uncoated
freesheet paper pricing.
Our intuition was correct and offset and
card stock pricing continues to increase. The
significant reduction in capacity has resulted
with virtually all North American manufacturers
announcing an additional price increase for
uncoated freesheet.
As we shared in December, without a
significant reduction in capacity, coated market
pricing will continue to ease down through the
second quarter of 2014. Despite NewPage
silencing a machine at a mill in Rumford,
Maine and Verso taking downtime at their mill
in Bucksport, Maine capacity reductions were
not significant enough to balance the coated
market supply and demand. Therefore, lower
pricing is available.
How long can this go on?
Traditional coated freesheet manufacturers
in today’s market can sell uncoated freesheet
at a higher price than coated freesheet. With
capacity available, expect traditional coated
suppliers to produce more uncoated product.
A production increase in uncoated product
may stabilize the price for the uncoated market
and reduce coated capacity at participating
mills. Even this potential reduction in the
coated market may not be significant enough
to end the price decrease. However, a capacity
reduction paired with well-timed maintenance
and a traditional busier third and fourth quarter
could set the stage for third quarter price
increase announcements in the coated sector.
In the meantime, Publishers Press is grateful
for the opportunity to be your business partner
and will continue to provide market savvy paper
pricing for you and your company.
Your adjusted paper pricing, located on the
back of this page will be effective April 1, 2014.
For questions or cost saving information,
please contact your Print Specialist.
YOUR NEW PAPER PRICING ON REVERSE
A paper industry newswatch, brought to you by your friends at Publishers Press.
March 2014
Paper Prices at the Mercy of Capacity Reductions
ReportStock