All major North American paper mills have announced price increases applying to coated freesheets, #4 coated groundwood, and uncoated offsets. An increase for #5 coated groundwood has not been announced but is considered likely. The increases, which range from $1.00-$3.00/CWT (per hundred weight) and vary by paper stock, will be effective for most consumers starting April 1, 2006.

The increases are stemming from mill closures and temporary shutdowns in Canada that have resulted in 1.8 million tons of idle production capacity. The problems in Canada are unlikely to improve until there is a drop in the Canadian dollar or in wood or energy costs. Adding to prices are fuel surcharges charged by many mills due to increases in the cost of oil.

At Lane Press, your individual customer service representative will notify you if any of the paper price increases will impact you. Also, keep a look out for the next issue of the Paper Prophet e-newsletter, which will include more details about the price increases and other issues related to paper.