Paper Market Update

2018-10-26T11:45:46+00:00June 13th, 2018|

Reported by our friends at Veritiv for Q1-2018

The tight paper market continues to fluctuate with prices expected to continue to increase at least through the end of June.

Due to the recent tariffs on Canadian paper the paper market is experiencing an extraordinary segmentation of newsprint, machine finish high-bright, and directory grade prices. This is due to American mills implementing market-driven price increases as Canadian producers chase substantial increases due to the U.S. import duties. Rising freight costs are also attributed to increasing paper prices.

Coated Mechanical

No changes in CGW capacity YTD. Due to the tight European market imports declined 14% the first two months of the year. Orders need to be placed at least 90 days in advance to ensure required delivery dates. Expect this to continue in Q2.

Coated Woodfree

No permanent CFS capacity announcements in Q1. Due to the tight European market imports declined 7% the first two months of the year. Ready dates for CFS are out 45 days

Uncoated Mechanical

Uncoated Mechanical was at 97% shipments to capacity in March and is at 91% YTD.

The recent tariff’s implemented are in the 28-32% range for Hi-Brite grades. Due to the Hi-Brite PM shuts in 2017, supply and demand is extremely tight. The SC market remains tight in North America. Expect exports YOY 2017 to 2018 from North America to increase and imports into North America to decrease, keeping the SC market tight into the future.

Uncoated Woodfree

Demand was down ‐3.6%. Shipments were down -2.8%. Shipments to capacity at 94% YTD. Expect further price increase announcements are expected. This is an extremely tight market, while the market is not on allocation, most mills are loosely allocating tons based on previous supply from 2017.

Newsprint

This market is extremely tight! The recent Tariff’s implemented are in the 28-32% range for Newsprint grades for Alberta, Catalyst, Tembec and Kruger. Resolute is 4.4% and White Birch is at zero. Demand fell ‐10.9%. Shipments declined ‐10.4%. Shipments to capacity at 101.3%.