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May 2008
Taking Stock
Don’t believe the rumors—availability of coated groundwood paper is
still very tight. The U.S. coated paper market continues to be
characterized by low import levels (due to the value of the dollar
relative to other currencies) and lowered capacity (due to mill and
machine closures). Both of these factors have had a significant impact
on supply and availability.
U.S. Wood Chip Prices Up in First Quarter 2008 The deteriorating housing market in the U.S. is having an increasing impact on the wood fiber costs for the pulp industry in North America. Sawmills, which typically supply the least expensive wood fiber to pulp producers, have reduced production by over 15% in 2007, tightening wood chip supply and forcing pulpmills to increase their usage of expensive roundwood chips.
Mill Round Up
Two U.S. Paper Producers Pursue IPOs NewPage Group Inc. and Verso Paper Co. are attempting to leverage the current state of the coated paper market with initial public offerings. Supply is tight, prices are high, and demand is holding for the time being—though forecasted to decline. For these two powerhouses in the coated paper market, this may be their window of opportunity. NewPage To Keep Niagara Mill Running Due To High Market Demand NewPage Corporation has decided to continue running both of its paper machines at its Niagara, Wisconsin facility until the fall of 2008. NewPage had announced in January plans to permanently shut down the facility, which produces approximately 18,000 tons per month of coated No. 4 groundwood products.
Environmental Stewardship
Paper Recycling Hits Record High In 2007, an all-time high of 56 percent of the paper consumed in America was recovered for recycling, achieving a significant industry goal five years ahead of schedule. When The American Forest & Paper Association (AF&PA) announced this achievement on April 1, it also set a new goal of 60 percent recovery by 2012. New Study Finds FSC Provides Better Forest Protection A new Rainforest Alliance study has found that forest concessions managed in compliance with FSC certification standards have seen fewer wildfires and less deforestation compared with protected and other areas within the Maya Biosphere Reserve. Sappi North America Achieves Triple Chain of Custody Certifications Sappi Fine Paper North America has achieved triple chain of custody certifications (Sustainable Forestry Initiative, Forest Stewardship Council, and Programme for the Endorsement of Forest Certification programs) for its three coated fine paper mills. |