Incorporating
Official Board Markets
Paper, Packaging and Fiber Market News and Prices for North America
Jul. 24, 2015 | Vol. 37, No. 28
Graphic paper demand in North
America has dropped 48% since
the turn of the century.
Assess machine conversion
challenges at
www.risi.com/NAConversion
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After a month of incomplete worldwide chemical market pulp producer data, full "World 20"
inventory and shipment figures returned with June results after Brazilian bleached eucalyptus
kraft (BEK) came back into the fold.
Overall market pulp inventories declined one day-of-supply in June to bring levels to 34
days, with bleached softwood kraft (BSK) down a day into balanced levels and bleached hardwood kraft (BHK) down two days to 38 days, according to figures the Pulp and Paper Products
Council (PPPC) released on July 23.
Separately, the global BHK market is set to deal with an unexpected supply shock after
Asia Pacific Resources International (APRIL) closed down its big 1.5 million tonnes/yr BHK
line at Rizhao, China, due to a drought.
The Rizhao closure, expected to last until October, came a week after the firm closed a
smaller 300,000 tonnes/yr line leading to 1.8 million tonnes and about 5% of global BHK supply being shuttered when market conditions were just
››› continued on page 8
Neenah's $120 million purchase of FiberMark would
be the specialty/technical firm's fourth deal since 2012
Neenah Paper continued its expansion in specialty and technical paper products, signing
a definitive agreement to acquire FiberMark for $120 million in a move that the company
believes will help it grow in premium luxury packaging.
The deal, if completed as planned by July 31, would be Neenah Paper's fourth acquisition
since 2012 and second one in technical products in three years. Last year, Neenah Paper
acquired Crane & Co's technical materials div, which included a plant in Pittsfield, MA. The
other two acquisitions involved premium uncoated fine papers: Wausau Paper's colors and
premium papers unit and Southworth's business papers brand.
For the deal to be completed, Neenah Paper is purchasing the outstanding equity of ASP
FiberMark from an affiliate of American Securities.
From FiberMark, Neenah Paper adds further capability in the premium packaging, a
segment the company has expanded in over the last few years. With annual sales of more than
››› continued on page 6
$160 million, FiberMark is a specialty coater and
Despite 5% decline in US shipping sack volume and
with more imports, multiwall paper market stable
This Week:
IP Springfield set for
$100 million upgrade
2
K-C reports 4% drop on
consumer tissue prices
5
Drought, prices cause
Howe Sound news shut
5
Packaging Focus World stocks fall one day as Brazilian BEK figures
return; supply shock expected from Rizhao shut
2-4
US shipping sack deliveries for the first half are down 5% from a year ago, with imports of
paper sacks from Canada, Mexico, and Brazil a major factor, according to the latest industry
statistics. But the multiwall sack kraft paper market has been quiet on pricing this year on most
fronts including pricing after major industry consolidation in 2014, according to contacts.
"I've been expecting something might happen with prices because of the decline in sack
volume this year, but it has been very quiet," one sack converter said.
US shipments of unbleached multiwall sack kraft paper for the first half of this year are
down 22% from a year ago, with some of this weakness possibly from "bleeding" of some
multiwall paper into other kraft paper statistical categories, one contact noted.
Total US unbleached kraft paper shipments for the first half were up 0.4% from a year ago
-- a strong performance for this long-declining grade sector -- and were helped by strength in
bag and sack grades, up 14%, and kraft converting paper, 5.2% higher, according to American
Forest & Paper Association (AF&PA) statistics.
››› continued on page 2
Pa c k a g i n g F o c u s
Containerboard
PCA exceeds earlier 2Q
profit guidance, helped
by fast DeRidder ramp
Packaging Corp of America (PCA) reported
slightly higher operating earnings for the second quarter, helped by improved performance
of its big DeRidder, LA, containerboard mill.
Excluding special items, second quarter
net income reached a record $116 million
($1.18/share) compared with net income of
$114 million ($1.16/share) on flat sales of
$1.5 billion. The result exceeded the company's prior guidance by $0.15/share.
"We had an outstanding quarter operationally in both our mills and box plants,
which increased earnings significantly over
prior guidance," said CEO Mark Kowlzan
in the company's earnings announcement.
"The benefits from improvements made at
the DeRidder mill, during its first quarter outage, were realized faster than expected, which
allowed further grade optimization in our containerboard mill system," Kowlzan added.
Faster than expected ramp up.
PCA missed consensus first quarter earnings estimates partly because of 22 days of
downtime at DeRidder. The downtime resulted from extensive optimization work to
the mill's pulp mill, energy system, and two
paper machines.
The work followed last fall's conversion of the D-3 machine from newsprint to
production of 355,000 tons/yr of containerboard. The first quarter outage took six days
longer than expected because of "problems"
with vendor-supplied equipment for the
615,000 tons/yr D-1 linerboard machine,
Kowlzan said.
The D-3 machine produced 79,000 tons
(875 tons/day) in the second quarter, including 59,000 tons of kraft linerboard and
20,000 tons of recycled corrugating medium. This helped PCA reduce its outside
purchases of containerboard by 56,000 tons
from the second quarter of 2014.
Within 80% of target. "We are basically in the 80% range of reaching our 1,000
tons/day for the D-3 machine," Kowlzan
told analysts.
"D-3 has proven to come on very quickly" and is producing a 75%/25% mix of linerboard to medium, he said. The machine
was originally expected to produce more
medium.
D-3 is scheduled to go down again for
13 days in September for the installation
of six new dryer cans, rather than the originally expected four, which is to help the machine achieve its 1,000 tons/day target and
reduce cost. The company still believes D-3
2
will contribute $60 million of EBITDA,
Kowlzan said.
"The ability to produce virgin, high-performance linerboard grades on D-3 plus the
improvements on D-1 allowed us to make
more lightweight and specialty grades at
DeRidder and shift other (heavier weight
grades) to our Counce, TN, and Valdosta,
GA, linerboard mills," Kowlzan said. "This
resulted in record productivity on a tons/day
basis and lower cost at all three mills."
Box shipments up 2.1%. Corrugated
box shipments were up 2.1% on a total and
per work day basis over "a very strong" second quarter last year," exec VP Tom Hassfurther told analysts. He said profitability
was helped by a "richer mix," achieved partly from migrating former Boise box plants
to higher-value added corrugated business.
The company said EBITDA margins in
its packaging business increased to 23.4%
in the second quarter of 2015 from 22.6%
a year ago.
The fourth largest North American containerboard and corrugated box producer,
PCA acquired Boise for nearly $2 billion
in October 2013. From Boise, PCA added
containerboard capacity in DeRidder and
Wallula, WA, along with corrugated plants,
and uncoated freesheet and specialty paper
capacity at three mills including Wallul
Four board firms report. Next week
on July 29, North America's two largest
containerboard and box companies, International Paper and WestRock, will report their
second-quarter earnings as will Smurfit
Kappa Group and Kapstone.
• PCA said that its board of directors
has authorized the repurchase of an additional $150 million of the company’s
outstanding common stock. Together with
remaining authority under previously announced programs, PCA may repurchase
about $205 million of additional shares, the
company said this week. The timing and
amount of repurchases will be determined
by the company.
IP planning $100 million
upgrade to Springfield, OR,
kraft linerboard mill
International Paper's (IP) request for a fiveyear property tax waiver for a proposed $101.6
million upgrade to its Springfield, OR, kraft
linerboard mill was approved by the local city
council and county commissioners.
The exemption would save IP more than
$8.5 million in property taxes on the upgraded equipment over a five year period,
the Eugene Register-Guard reported.
IP said that it is planning to replace the
headbox of the mill's No. 2 linerboard ma© 2015 RISI, Inc. All rights reserved
chine and the floor of one of its boilers. If
the company approves the plan, the project
would begin in September and be completed in 2016.
A single 256-in. trim Beloit Bel Bond
paper machine with an extended nip press
runs at the mill. The PM 2 is capable of
producing 635,000 tons/yr of mainly standard and lightweight unbleached kraft linerboard, and some white-top linerboard,
according to RISI Mill Intelligence. The
mill's No. 1 linerboard PM was shut down
in 2001.
The proposed upgrade will not add jobs
beyond the estimated 400 temporary contract workers for the project. But a company
official told the Register-Guard the upgrade
would offer "long and reliable operation" of
the 66-year old mill.
Under the exemption, IP could reduce
the mill complex's workforce by up to 20%
but the company said it has no plans for any
job cuts.
The company also agreed that any new
hires during the five-year period on average would receive more than 150% of Lane
County's average annual wage of $38,353 -or $58,530/yr. The mill's average employee
annual compensation, including wages and
most benefits, is $95,882, according to the
local newspaper.
Last IP West Coast mill. Springfield
is IP's only major containerboard mill on the
West Coast. IP acquired the mill in 2008 as
part of its $6 billion acquisition of Weyerhaeuser's containerboard, packaging, and
recycling business. The company shut the
Albany, OR, mill acquired in the same deal
in late 2009.
The mill is the highest cost mill in IP's 16mill US industrial packaging system and is the
only other IP mill besides Mansfield, LA, mill
that makes some white-top linerboard.
RISI Analytical Cornerstone estimates
Springfield's cash cost for making unbleached kraft linerboard at $330-340/ton
and its cost for white-top at more than $500/
ton, excluding delivery. Both are on the
high end of the industry cost curve, according to RISI Mill Intelligence.
SHIPPING SACK IMPORTS FLOW
‹‹‹ continued from page 1
US sack shipments down 5%. US
finished shipping sack shipments for the
first half of this year were down 5% to
1.18 billion sacks, according to the Paper
Shipping Sack Manufacturers Association
(PSSMA).
"Domestic sack demand has been strong
for building materials end uses for the first
PPI PULP & PAPER WEEK/July 24, 2015
P a c k a g i n g F o c u s , continued
half of this year, up about 3.6%," said PSSMA pres Dick Storat. "But agricultural and
food end users were down about 5%. Minerals were off 20%, partly due to lower demand
from the oil industry for drilling sand."
Apparent US purchases of paper multiwall sacks (with imports included) were
down a more modest 2% through May.
Jump in paper sack imports. Imports of converted multiwall (MW) paper
sacks through May were up 16% from a
year ago due to the strong US dollar and
sluggish growth in other countries, making
the US market an attractive target, contacts
said.
On the other hand, imports of laminated
woven (LW) sacks were down 24% for the
first half "with imports from China no longer creating havoc" because of antidumping duties that were first imposed in 2008,
one contact claimed. China, however, still
accounts for 10% of total US laminated woven and paper sack imports.
"Laminated woven sacks may also be
maturing in ability to grow in certain markets like pet food," one contact said.
Overall US laminated sack demand was
down about 5% through May this year, although domestic LW sack manufacturers,
which in some cases also make paper sacks,
were able to increase shipments fractionally
and capture market share from imports.
Total sack imports (paper multiwall +
laminated woven) were up a more modest
5.4% through May, according to the PSSMA and based on US trade statistics.
Brazilian imports up 74%. Paper
multiwall sack imports from Canada, which
account for more than 40% of total US sack
imports (MW + LW), were up almost 14%
through May. Imports from Mexico, which
supplies about 13% of total US sacks,
jumped almost 18%.
But the biggest increase was from Brazil, where the domestic economy is in recession, the Real has dropped 17% against the
US dollar this year, and two new kraft paper
machines plus some sack converting lines
were added.
Brazilian sack shipments to the US are
up 74% this year, raising some eyebrows in
the US sack industry. Brazil now accounts
for about 5% of total US sack imports (13
million sacks).
Also, some of the converted sacks coming over the border from Mexico (33 million sacks) are reportedly from a large new
multiwall plant that is using Chilean paper,
one contact said.
The Brazilian sacks are imported at an
average value of $285/thousand sacks compared with a global average US import value of $348/thousand, according to US trade
data. Mexico's sacks are coming in at $325
and Canada's sacks at $344/thousand sacks.
PPI PULP & PAPER WEEK/July 24, 2015
US KRAFT PAPER STATISTICS -- FIRST HALF 2015
(000 tons)
Unbleached
Shipments
Multiwall
Bag and sack
Converting
Exports
Imports
Mill inventories (ended June 30)
Operating rate
Bleached
Shipments
Operating rate
Total kraft paper
2015
First half
2014
% chg
794
200
407
187
90
80
63
n.a.
791
256
357
177
110
87
55
n.a.
0.4%
-21.7
13.9
5.2
-18.2
-8.3
14.1
56
n.a.
850
62
n.a.
852
-8.9
-0.3
Source: American Forest & Paper Assn.
More sack imports, which tend to be
heavier valve type bags, are arriving from
Europe, including from Germany and the
Netherlands, the trade statistics indicate.
US paper prices stable. But so far,
the softness in US shipping sack cutup from
the surge in converted sack imports has not
translated into any weakness in prices for
multiwall kraft paper, according to contacts.
"Multiwall paper has been one of the
brighter spots this year," one contact said.
"If any oversupply develops, mills can just
shift machines to producing lightweight
kraft linerboard."
North American producers last raised
prices on extensible and natural multiwall
kraft paper by $50/ton in the spring of 2014
in the USA. Natural sack kraft paper (50 lb)
is reportedly selling around the $750-775/
ton range, net of discounts, in the USA. Extensible sells in the $900-$1,000 range domestically -- though most high-performance
extensible paper is exported for cement
packaging and other end uses.
Tolko,
Canfor,
and
KapStone's
Longview, WA, mill are the only North
American producers of high-performance
extensible sack kraft paper.
Competitive export market. US
exports of unbleached kraft paper, mainly
extensible multiwall, declined 18.2% to
110,000 tons in the first half of this year, according to US trade data compiled by the
AF&PA. Imports of unbleached kraft paper
were down 8.3% to 80,000 tons over the
same period.
US export producers such as KapStone
have been facing "headwinds" from the
strong dollar, slowing economies and construction markets in Asia, Latin America
and the Middle East, and the West Coast
© 2015 RISI, Inc. All rights reserved
port slowdown earlier this year that ended
in February, according to contacts.
Pricing in export markets for B-grade
paper in some developing markets is in the
mid-$700/tonne range, contacts told PPI
Europe. Global markets have also become
more competitive because of slow demand
in Europe -- the major exporting region -and rise of the dollar that turned producers
in Europe, Russia, and Brazil much more
cost competitive.
"Dollar-priced paper has had to come
down in price when contracts open up to be
competitive with paper sold in Euros," one
contact noted. "So exchange rates have created downward pressure on dollar prices."
European price hike difficult. Major European producers such as Mondi and
BillerudKorsnas announced up to Euro 60/
tonne price hikes on unbleached sack kraft
paper for June/July, and implemented about
Euro 20 of the increase with negotiations
still in progress, PPI Europe reported.
The main reason the increase did not
achieve targeted levels has been slow demand in Europe during the seasonally
strong summer period, according to PPIE.
Eurosac recently reported deliveries of
finished sacks in Europe were down 2.2%
through April, from deliveries in 2014
through April.
Few waves from consolidation.
The biggest structural change in the North
American market last year was global industry leader Mondi's acquisition of Graphic Packaging's nine sack plants and Pine
Bluff, AR, mill to become the largest and
only integrated North American shipping
sack converter.
Hood Packaging added to its position
last year as the second largest producer by
acquiring four Bemis multiwall plants. El
3
P a c k a g i n g F o c u s , continued
Dorado Packaging acquired Greif's two
multiwall plants plus an Arkansas independent converter (which provided the name
for the new business).
Mondi's new leadership role in the US
market has not caused many waves, despite some earlier apprehension, according
to contacts. One converter, however, noted
paper quality from its 150,000 tons/yr Pine
Bluff mill has "noticeably improved" since
the acquisition.
Brown bag & sack growing. US
unbleached kraft bag and sack paper shipments jumped almost 14% to 822,000 tons
on an annualized basis for the first half -which would be the highest level in about
25 years, according to AF&PA statistics.
"Demand for lighter weight (30-33 lb)
unbleached paper has been benefiting from
the shift of McDonald's and other fast food
chains from bleached and plastic bags to
brown paper bags," one contact said.
Another factor helping growth may be
municipal and state bans on plastic bags although many such ordinances require consumers to pay for each paper bag and are
probably providing more of a boost for plastic polywoven returnable bags, according to
some contacts.
Heavier weight unbleached kraft grocery
bag paper is reportedly selling in the $590650/ton range, net of discounts, one contact said. Recycled bag paper from recently
converted newsprint machines is reportedly
selling at lower price levels. More of the bag
market shifted to 100% recycled bag paper,
with kraft mills shifting more to higher value
multiwall and kraft converting grades.
• Union workers at KapStone's 1.1
million tons/yr Longview, WA, kraft paper
and containerboard mill on July 22 rejected
the company's latest offer, according to the
union. About 68% of voting members rejected the offer, down from 99% against the
first of two earlier offers, according to the
Longview Daily News. Union workers said
they are continuing to meet with KapStone
to resolve various sticking points that include health care, seniority rules, and other
issues. "Just like the company, we'd like to
get a labor agreement, but we don't have
one yet, so we're preparing for the worst,"
a union VP told the newspaper. KapStone
said it will run the mill -- at least the mill's
largest kraft paper and containerboard PMs
-- if the union strikes.
Conference
Top CEOs, challenges,
issues are focus points for
RISI North America event
From challenges to innovation and strategies from top industry CEOs, RISI's 30th
4
annual North American Forest Products
Conference runs on Sept. 28-30 in Chicago.
The event includes PPI's annual global
awards dinner on Sept. 28 as well as a special packaging buyers' seminar, a full-day
on Sept. 29 of industry speakers on key topics, and RISI economists' two-year forecasts
as well as a special Housing Demand panel
discussion on Sept. 30. The conference is at
the InterContinental hotel.
The first full day on Tuesday, Sept. 29,
features the presenting of the 2015 RISI
North American CEO of the Year award to
Graphic Packaging's David Scheible, who
has led the company through a significant
financial recovery that included eight acquisitions and creating a more integrated boxboard company, according to analysts who
voted for Scheible.
After the award ceremony, Scheible
is to speak for about 20 minutes and then
join a CEO panel discussion that includes
Glatfelter's Dante Parrini and WestRock's
Steve Voorhees. Voorhees recently became
the top executive at WestRock, which was
developed from one of the industry's largest
M&A deals that combined RockTenn with
MeadWestvaco this month.
Other presenters include analysts who
will detail key market dynamics and impacts in pulp and paper, containerboard/boxboard, and forest products. The analysts are
UBS's Gail Glazerman on financial metrics
in pulp and paper, Deutsche Bank's Debbie
Jones on containerboard and boxboard, and
RBC Capital Markets' Paul Quinn on forest
products' businesses.
McKinsey & Company Dir of Knowledge Peter Berg and American Forest & Paper Association pres/CEO Donna Harman
will speak on broad-based topics critical to
the industry, with Berg on issues and solutions, and Harman on regulations, trade, and
legislation. Also in the session with Berg
and Harman are RISI Principal Economist
for Lumber Bob Berg and RISI Director
for Macroeconomics David Katsnelson.
Berg will discuss US housing demand, and
Katsnelson global economic growth and
factors.
Further, Berg will lead the special Housing Demand discussion on Sept. 30 at the
start of the day. Panelists include the National Association of Home Builders' Chief
Economist David Crowe and Wells Fargo
Managing Director for Industrials Investment Banking Charles Spiggle.
Looking toward the short-term future,
Brazilian Tree Industry (Iba) pres Elizabeth
de Carvalhaes will discuss GMO eucalyptus tree growth potential in Brazil as well as
sustainability efforts. De Carvalhaes in May
© 2015 RISI, Inc. All rights reserved
was selected as the new president for two
years of the International Council of Forest and Paper Associations. University of
Maine professor Mike Bilodeau will report
on the potential for nanocellulose, following the first commercial plant started up in
the USA this year and FP Innovations Research Leader for Market Research David
Fell will consider the future for construction
in terms of demographics and lumber type.
Conference information and registration
is at http://events.risiinfo.com/north-american-conference/registration.
Packaging news briefs
Graphic Packaging reported adjusted
net income excluding special charges for
the second quarter of $61.3 million ($0.19/
diluted share) compared with $66.0 million
($0.20/share) a year ago. Adjusted EBITDA
of $192.1 million compared with $190.8
million in the prior year. Adjusted net sales
increased $48.1 million, up 4.8% from a year
ago, excluding sales from divested businesses. “We delivered on our expectations
despite continued soft demand in key end
markets,” said chmn/CEO David Scheible.
“Although market volumes remain challenging, we continue to post strong results,”
with adjusted EBITDA margins improving
to 18.2% from 17.1% in the year ago period… After completing the acquisition of
Burgo’s Mantova mill in Italy, Pro-Gest
recently said it plans to convert the mill’s
newsprint machine to 420,000 tonnes/yr
of containerboard production by August
2016, PPI Europe reported. The company
is in negotiations with suppliers and plans
to make testliner and recycled corrugating
medium in a basis weight range of 70-140
g/m2, according to a spokesman. The cost
of the project is expected to be about $165
million, the company said. Pro-Gest signed
a binding offer to acquire the Mantova mill
at the end of March. The 160,000 tonnes/
yr newsprint mill has been idle since February 2013. Pro-Gest runs 620,000 tonnes/
yr of recycled containerboard capacity in
Europe, according to RISI estimates. In the
USA, five newsprint machines since early
2013 were converted to containerboard and
or packaging paper production... Bemis
signed an agreement to acquire the rigid
plastic packaging operations of Emplal Participações, a Brazilian manufacturer of plastic packaging for food and consumer applications. The firm operates two facilities in
Brazil and generated $75 million in 2014.
PPI PULP & PAPER WEEK/July 24, 2015
Tissue
K-C grows North American
volume by 5%, and reports
4% decline in average pricing
In possibly its deepest quarterly price drop
in years, Kimberly-Clark' (K-C) reported a
4% decline in its consumer tissue prices in
North America in the second quarter, vs second quarter 2014's average.
Even with the 4% price decline, the company reported that consumer tissue sales
were flat and volume actually increased 5%.
"Volumes rose high-single digits in bathroom tissue, with benefits from increased
promotion shipments on Cottonelle. Volumes increased low-single digits in facial
tissue and paper towels." the company reported on July 23.
K-C is the second or third largest tissue paper producer in North America with
Procter & Gamble, behind Georgia-Pacific.
Major producers have not officially
increased consumer tissue product pricing following a formal announcement four
years ago in North America. The US's second largest private label producer, Clearwater Paper, did announce a consumer tissue
increase for August and First Quality tried
one last year. No others were known to be
out with increases as of last week on consumer tissue. In After-from-Home tissue,
North American producers implemented a
price increase last year.
Producers, including the largest, did increase prices unofficially since second quarter 2013 by reducing sheet counts and roll
sizes. During that period, major producers
also appeared to increase national advertising for their products both on television as
well as with specialized inserts.
K-C's chmn and CEO Thomas Falk told
analysts on July 23 that, in consumer tissue,
"competitive activity has probably picked
up just a little bit."
"We are continuing to do well with Cottonelle and have seen that take off ... (and)
Scott Tissue is also continuing to do well in
the market," he said. "So probably, maybe
the competitive frequency has picked up
just a bit and you are seeing that a little bit
in the pricing number."
He added that some of the lower pricing
resulted from "promotional (and advertising
spend) timing. And so I wouldn't necessarily
say that the uptick this quarter [in ad spend]
was fully reflective about what's happened
in the market. Some of it had more to do
with timing of promotions than the overall
market activity."
• Wausau Paper appointed Rob
Yanker to its board of directors, effective
immediately. Yanker is one of the company's nominees for election at its 2016 Annual Meeting of Shareholders. Yanker is a
PPI PULP & PAPER WEEK/July 24, 2015
dir emeritus at McKinsey & Company.
Yanker worked at McKinsey for 27 years,
from 1986 to 2013, in the industrial, consumer, and telecommunications sectors.
Newsprint
With price drop, drought,
Paper Excellence shuts down
Howe Sound newsprint mill
Citing local drought conditions and declining prices, Paper Excellence shut down its
newsprint machine and related thermomechanical pulp production at its Howe Sound
Pulp & Paper (HSPP) mill in Port Mellon,
BC, on July 23, cutting 264,000 tons/yr of
capacity and 180 jobs.
The shut represents about 4.2% of total
North American newsprint capacity and
36% of the mill's workforce of 505. The
company will continue to produce northern
bleached softwood market pulp (NBSK),
with capacity of about 428,000 tonnes. The
mill was the 7th largest of 10 North American newsprint producers.
"In light of the extreme drought conditions experienced since May, the decision
to cease paper operations was advanced to
help conserve water supply," the company
said in a release. "The future of our mill lies
with our strong pulp and green energy opportunities that will continue to grow."
"With newsprint and value added newsprint prices declining, combined with a
shrinking market that is expected to continue, HSPP undertook an extensive review
process to look at other product options, and
found that either our equipment and furnish
was not suitable nor could it be easily and
economically modified, or that the markets
could support demand for those new products," the statement added.
The company noted the "steady annual
decline" in the standard newsprint and high
brite newsprint markets, and that prices are
expected to continue to decline. It also cited
increasing variable costs at the mill including electricity and wood.
News price down 16.5%. The standard 30-lb newsprint is $505/tonne this
month – its lowest level in 5 ½ years. The
$505 level also was $20 less than the standard newsprint price in the US East, according to PPI Pulp & Paper Week's Price
Watch. The $505 this month is 16.5% less
than it was a year ago.
From its demand peak in 2000, North
American newsprint demand dropped 70%
to four million tonnes in 2014, according
to RISI's North American Graphic Paper Forecast – 5-Yr. report published last
month.
In the last three years, newsprint capacity has declined from permanent shuts of ma© 2015 RISI, Inc. All rights reserved
chines as well as conversions. In 2013 and
2014, conversions to containerboard and
packaging paper were completed on both
the PMs at SP Fiber Technology's Dublin,
GA, mill as well as one of SP's machines at
the Newberg, OR, mill, and also by Atlantic
Packaging at its Whitby, ON, mill.
Paper Excellence acquired the Howe
Sound mill from former venture partners
Canfor and Oji Paper in 2010. The mill
opened in 1909 and was acquired by Canfor in 1951, with the joint venture formed
in 1988. A Valmet 324.4-in-width newsprint
machine was added in 1991.
Final plan to come. Paper Excellence
said a final plan has not been completed on
the paper mill assets but potential for other
uses for the site or its equipment continue to
be considered.
Unifor Local 1119, which represents
workers at the mill, said the closure was "a
shock to us all" and said it would work to
secure possible jobs for displaced workers
at other Paper Excellence mills in British
Columbia. The company's BC pulp mills
are in Chetwynd, Mackenzie, and Skookumchuck. Paper Excellence restarted the
Chetwynd mill on July 7. The mill had been
idle since 2012.
The union noted the shutdown was related to the dwindling supply of water in a
lake that feeds the mill.
"By closing the paper functions as soon
as possible, the company hopes to stretch
the water supply for pulp and power to
avoid temporary closures of those sections
of the mill," Unifor said.
Trade
DOC interim ruling on
SC paper imports from
Canada expected on July 28
Port Hawkesbury Paper, in an update on a
US countervailing duties trade case against
supercalendered (SC) paper imports from it
and other producers in Canada, said it expects an interim ruling by the US Dept of
Commerce (DOC) on July 28 that could include preliminary duty.
In a July 22 letter, Port Hawkesbury pres
of sales Tom Gallagher said the Nova Scotia
mill was preparing for a site visit from DOC
representatives in early August.
"This visit will allow us to further prove
the points of our legal case," he said.
Gallagher said the DOC selected Port
Hawkesbury and Resolute Forest Products
for investigation, and Irving and Catalyst
Paper will be subject to average or nominal
duties.
The case was filed by UPM's Madison
Paper Industries and Verso in March.
5
Specialty Papers
Appvion, then Koehler set
5-7% pricing increases on
thermal POS receipt paper
Two of the world's largest thermal paper
producers were out with price increases in
the last week, with North America's largest,
Appvion, announcing a 5% to 7% increase
for its POS papers, effective Sept. 1, and
Germany's Koehler Paper Group out with
5-7 % increases in North and South America, effective Oct. 1.
Koehler is the No. 2 largest thermal producer in the world and Appvion No. 3, behind Japan's Oji and Kanzaki.
"The increase is due to strong demand
and increases in input costs, and applies to
domestic and international customers," Appvion said, of its global pricing increase.
Appvion's 7% increase is for Alpha 400
2.1 and Alpha 400 2.3, and its 5% rise is for
Alpha 800 2.4 and Alpha 800 3.4, Alpha
820 2.4 and Alpha 820 3.4, and POS Plus
600-2.4.
If successful in the more than 220,000
tons/yr USA POS market, the increase
would be the first one in the USA on thermal
POS receipt paper in more than 2 1/2 years.
The increases follow an 11% decline in
pricing for 48- and 55-g coated thermal POS
receipt paper in the USA -- after reaching its
NORTH AMERICAN PRINTING/WRITING PAPER STATISTICS
JUNE 2015
Uncoated mechanical
Shipments
Operating rate
Imports
Demand
Uncoated freesheet
Shipments
Operating rate
Imports
Demand
Coated freesheet
Shipments
Operating rate
Imports
Demand
Coated mechanical
Shipments
Operating rate
Imports
Demand
Total printing & writing
Shipments
Operating rate
Imports
Demand
(000 tonnes)
June
% chg.
2015
year ago
Year-to-date
2015
% chg.
year ago
270
90
20
269
-13.8%
90 1
-52.9
-18.1
1,656
89
134
1,647
-12.4%
90 1
-19.3
-13.3
654
92
90
716
4.4
89 1
8.9
7.7
3,846
90
499
4,148
-2.0
92 1
3.7
0.0
258
85
80
332
-6.4
92 1
10.6
-2.2
1,549
85
450
1,950
-6.9
92 1
3.5
-3.5
204
87
31
228
-15.0
89 1
48.9
-8.4
1,305
92
186
1,436
-9.2
88 1
21.4
-6.4
1,386
89
222
1,544
-4.8
89 1
1.5
-2.3
8,356
89
1,269
9,181
-6.3
91 1
2.7
-4.4
Mill Inventories
(000 tonnes)
Uncoated mechanical
Uncoated freesheet
Coated freesheet
Coated mechanical
Total printing & writing
June
2015
207
623
481
157
1,468
May
2015
214
631
485
149
1,479
June
2014
232
657
397
161
1,446
Tonne change
from
from
month ago year ago
-7
-25
-8
-33
-3
84
-7
-4
-12
22
1. Operating rate, not a percentage change. r=revised.
Source: Pulp and Paper Products Council.
6
© 2015 RISI, Inc. All rights reserved
highest ever level in early 2013, according
to PPI Pulp & Paper Week's price report.
There's "no price pressure at this point,"
said a paper supplier at the end of this week.
"I am betting the price increase holds at
some level at different points between Sept
1 and Nov 1. The current jumbo roll price is
unsustainable for each manufacturer based
on input costs, freight, resale and currency,"
the contact said.
• Kohler Kravis Roberts is bidding
for NCR, CNBC reported this week. Thoma
Bravo and Blackstone have been previously
mentioned in reports as being interested in
acquiring NCR, which designs and sells
ATM and retail store customer POS checkout systems that run receipt paper.
• Monadnock Paper Mills said it expanded its EnviPortfolio of fiber-based line
to "replace plastics across a broad range of
applications and end-uses in retail, hospitality and other consumer-facing markets," the
company said. Launched in 2012, the EnviPortfolio papers in the Envi line are FSC
certified, manufactured carbon neutral with
Green-e Certified 100% renewable electricity (RECs). The line includes Envi Card
Stock, a 100% recyclable wood fiber alternative to PVC and PLA used in gift, loyalty,
promotional, and membership cards; Envi
Wet Strength Label; 100% PCW Envi Tag
and Ticket; and Envi Folding Box Board,
which is up to 100% PCW and is an 18 pt
white paper stock used for secondary packaging for luxury fragrance and cosmetics.
"Sustainability is ingrained in our everyday
business practices, and we are proud to offer alternatives to plastic," said Monadnock
chmn and CEO Richard Verney. "Consumers are seeking brands that are socially responsible so we are offering this new sample book to make it easier for designers and
brand owners to source more sustainable
solutions." A copy of the EnviPortfolio is
at Monadnock's website at http://mpm.com/
news/announcing-the-new-enviportfolio/.
NEENAH TO BUY FIBERMARK
‹‹‹ continued from page 1
finishing company with a "strong presence
in luxury packaging," according to reports.
A Neenah Paper official said the main
gain from FiberMark is its "complementary
capabilities that can drive future growth
(coating, saturating and heavier weight base
papers, as well as excellent design and prototyping) -- especially in premium packaging."
"The key overlapping end markets include premium packaging, decorative covers/security papers, labels and tape," the
official added.
Also, "They have a more complete portfolio of heavier weight papers, which supports some premium packaging end markets
PPI PULP & PAPER WEEK/July 24, 2015
that we are not in today. They have a variety
of other grades and markets, many of which
overlap where we are present today and
some that are new," the official said.
Like Neenah, FiberMark sells actively
outside North America from two paper mills
and four converting-only facilities. Still,
both firms generate a majority of their revenue (60% for Neenah) in North America.
Growing in luxury packaging.
Luxury packaging is a more than $45 million business at Neenah Paper and company
CEO John O'Donnell earlier this year said
the business was growing rapidly, and was
up by 20% in 2014. Neenah's luxury packaging is focused on bags and papers for
major brand and product names in clothing,
jewelry, and other products.
Neenah Paper would combine with FiberMark and gain in premium packaging
while the firm also pushes ahead on growing in technical products in the USA.
Filtration project in Wisconsin.
Neenah's largest end-use market for its products is in transportation filtration. O'Donnell
earlier this year said the business has been
growing at double-digit rates. Its transportation filtration business holds a commanding share in Europe that Neenah Paper now
wants to try to replicate in North America.
O'Donnell said the company expects its demand to exceed capacity for the products in
two to three years. As a result, Neenah Paper
will convert an uncoated papers machine in
Wisconsin by first quarter 2017 to filtration paper from uncoated specialty paper.
Also, it will start up an advance saturating
plant for filter paper at the Wisconsin mill
site that would produce safe flare-retardant
filters and greater dust holding capacity in
its products. The company's flare-retardant
air filter is in Ford's top-selling F-150. The
firm expects to spend $45 million this year
on the Wisconsin project.
With FiberMark's annual sales of more
than $160 million, Neenah Paper's total
revenue would total at least $1.06 billion,
based on estimates. The company's 2014
sales were $902.7 million, vs $696.0 million in 2011, before Neenah completed
three acquisitions and a partnership with
Italian premium paper producer Gruppo
Cordenons.
Neenah Paper has grown revenue by
30% and doubled income from continuing
operations the last three years, to $68.7 million from $29.3 million in 2011. Neenah
reported gross profit of $177.2 million last
year, vs $125.4 million in 2011. Also, Neenah Paper's share was up almost 200% late
this week, at $60.91/share on July 23, compared with $21.24 in late July 2011.
Spun off to K-C shareholders in November 2004, the company's market capitalization and enterprise value today is about
$1.02 billion and $1.2 billion, respectively.
It is now owned primarily by institutional
MONTH IN STATISTICS
US paper and board production was down 0.7% year-to-date
through May at 32.58 million tons (vs 2014 production through May),
according to the American Forest & Paper Association. May's
total was 6.597 million tons, down 1.9% vs May 2014's total.
In May, production gainers included corrugating medium,
which was up by 3.0%, tissue up by 1.7%, and unbleached kraft
boxboard up 3.9%.
Paperboard's May operating rate average was 96.2%, down from
97.2% in April, and paper's was 84.7%.
For year-to-date, linerboard production was up by 2.3% and
corrugating medium 3.2%. That put containerboard production
up by 2.6% year-to-date. Also, liquid packaging and food
service boxboard and tissue were up 0.3% and 2%, respectively,
year-to-date. The largest declines year-to-date were in newsprint,
down 21.2%, and coated printing and writing papers, down
7.9%. Further, coated mechanical paper production was down
10.8% year-to-date.
PAPER & PAPERBOARD PRODUCTION
Newsprint
Uncoated mechanical
Coated paper
Uncoated freesheet
Tissue
Unbleached kraft papers
Total paper
Linerboard
Corrugating medium
SBS boxboard
Unbleached kraft boxboard
Liquid packaging/food service board
Recycled boxboard
Total paperboard
Total paper and paperboard
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
Current
Month
157
116
456
624
639
132
2,411
2,152
870
184
226
263
185
4,186
6,597
US paper and paperboard production
millions of tons*
7.1
6.8
2015
6.6
6.3
2014
6.1
5.8
Jan
Mar
May
Jul
Sep
Nov
* Not seasonally adjusted.
same month
year ago
188
143
516
655
629
132
2,550
2,154
845
196
218
262
190
4,174
6,723
% chg.
2015/14
-16.5%
-18.9
-11.6
-4.7
1.6
0.0
-5.5
-0.1
3.0
-6.1
3.7
0.4
-2.6
0.3
-1.9
YTD
2015
740
616
2,450
3,258
3,126
656
12,252
10,510
4,254
868
1,024
1,294
897
20,332
32,584
YTD
2014
939
661
2,661
3,389
3,066
658
12,795
10,271
4,123
868
1,032
1,289
931
20,010
32,805
% chg.
2014/13
-21.2%
-6.8
-7.9
-3.9
2.0
-0.3
-4.2
2.3
3.2
0.0
-0.8
0.4
-3.7
1.6
-0.7
n.a. = not available. SBS: solid bleached sulfate. Linerboard and medium totals are for both virgin and recycled contents.
Note: Figures in 000 short tons unless otherwise listed. n.a.=not available. 1. American Forest & Paper Assn.
PPI PULP & PAPER WEEK/July 24, 2015
© 2015 RISI, Inc. All rights reserved
7
and mutual fund companies, with the largest
shareholders being Royce & Associates, Allianz Asset Management, Black Rock, and
Wells Fargo.
Interestingly, following the spin-off,
Neenah Paper in 2006 acquired FiberMark's
technical and specialty papers business in
Germany.
"We've got the financial strength and
employee talent to continue executing our
strategy to serve our customers well, grow
in specialty niche markets, and deploy capital in ways that add value for our shareholders," the company official said this week.
RIZHAO SHUT RAISES CONCERN
‹‹‹ continued from page 1
beginning to unravel in China that often
leads pricing cycles globally (P&PW, July
17, p. 1).
Force majeure. Market participants
first informed P&PW of Rizhao's impending closure on July 21, a day after APRIL
Rizhao issued a letter to customers announcing "force majeure" after the City of Rizhao
in Shandong province in eastern China, cut
off water supplies to all industrial companies to preserve supplies for residents.
In a letter sent to customers obtained
by P&PW, APRIL said the municipal government of Rizhao began a "Water supply
Control Program" starting in mid-June, but
drought conditions worsened and its pulp
mills were now cut off:
"City Rizhao have to cut all water supply to all industrial companies in Rizhao
(to) protect all human being needs. Under
such kinds of pressure, our No. 1 line shut
down on July 13, and No. 2 line would be
shut down from July 23," the letter said.
"We apologize (and) inform all of our customers that we could not honor all pending
contracts now."
APRIL hopes to receive enough water to restart production in October, and in
the meantime will try to shift some volume
from the Indonesian market to China, the
letter noted. If the two lines remain closed
for three months, it'll reduce BHK output by
an estimated 444,000 tonnes.
For competitors of APRIL, which some
in China call Asia Symbol, the unexpected
supply crunch led to a sudden reversal in
market behavior. Last week, the BSK market was crashing in China and market contacts reported $40/tonne or so drops vs June
levels and most saw $10 or bigger drops
potentially in BHK grades. Once news of
APRIL's Rizhao closure emerged, BHK
producers that were quietly cutting prices
suddenly stopped.
8
WORLD MARKET PULP STATISTICS -- JUNE 2015 *
5,000
World Producer Inventories
4,500
4,000
3,500
3,000
2,500
2010
2011
2012
2013
2014
2015
Note: Statistics represent 80% of capacity, and exclude China, Russia, and Indonesia. *Month-end
stocks divided by average daily shipments in the last three months.
Source: Pulp and Paper Products Council.
(000 tonnes)
June
2015
4,055
97
WORLD
Shipments
Utilization (ship.-to-cap.)
Shipments by grade
Bleached softwood
Bleached hardwood
Shipments by destination
North America
W. Europe
China
Rest of World
Producer inventories
Days of supply * -- all grades
Bleached softwood
Bleached hardwood
YTD
2015
23,007
92
YTD % chg
2015/14
4.1
2.0
1,923
1,997
11,171
11,062
0.6
8.0
661
1,217
1,061
1,116
June
2015
34
29
38
3,767
7,185
5,619
6,436
May
2015
35
30
40
1.7
0.4
11.8
3.5
June
2014
33
25
40
PULP INVENTORIES OF CONSUMERS AND PORTS -- JUNE 2015
European consumers
European ports
June
2015
582
981
(000 tonnes)
May
2015
573
1,018
April
2015
653
1,011
% chg
2015/14
6.8%
-5.3
Source: Utipulp (European consumer inventories for 11 countries), Europulp (inventories at ports for
eight countries). *n.a. = not available.
"We are still negotiating but things
look better due to the production troubles
of Rizhao mill," said a contact at a BEK
producer regarding July prices in China,
shortly after RISI's Shanghai bureau broke
news on the closure. "Unfortunately this
became public once we had already made
some small concessions."
'Completely different behavior.'
Other producers that had dragged out negotiations on July business and refused to
cut prices suddenly had a new swagger for
Chinese customers. After June BEK effective list prices closed at $675 in China,
price variance soared against a backdrop of
© 2015 RISI, Inc. All rights reserved
some producers cutting levels with certain
customers and others holding flat. BEK discounts between net and effective list prices
are generally 3-5% in China, sometimes
higher, while NBSK has remained 1.5-3%.
"We should see completely different
market behavior" now that the closure is
underway, another BEK producer source
said this week, who reported unchanged
July prices in China. "There were a lot of
rumors in China last week about … long fiber prices. We have a different view."
The sudden stabilizing in BHK prices
in China could have a knockdown effect
in other markets. For example, BEK proPPI PULP & PAPER WEEK/July 24, 2015
ducer contacts now expect to complete their
increases to Europe to an $810 list level,
while sources on both the buy- and sellsides in North America report a $900 effective list locked in that P&PW reported as a
preliminary price last week.
BHK operating rates surge? The
loss of 1.8 million tonnes at Rizhao impacts
China the most. But BHK producers globally are likely to redirect tonnes to China
now, reducing the leverage of buyers who'd
hoped to begin punching at BEK prices in
their own markets, contacts said.
"BHK demand in China has weakened
lately and local resale prices of BHK have
declined markedly in recent weeks. We
have been looking for an operating rate for
the BHK market of 92-93% in the months to
come," said RISI's VP of Fiber Kurt Schaefer in a July 22 research note to clients.
"Now that will likely be 95% or higher,
which can't help but put upward pressure
on prices. At this point, prospects for falling
BHK prices over the next several months
have probably been dashed."
But a US buyer contact believed that's a
problem for Asia, not US buyers. "Rizhao
is unfortunate for Asian buyers," said the
contact, who nevertheless reported BEK at
$900 this month and no near-term opportunity to drive down prices.
US spot pressure remains. Softwood grades could be a different story despite a one day-of-supply reduction in global BSK supply, though, because US NBSK
markets are flush with spot supplies at lower
prices.
"Depends on location… if you go into
the (Midwest) corridor you get into the
$580-590 range. I've got big tonnage deals"
available, the source added. If big volume
gets transacted at a $580 net delivered price
it'll likely result in US NBSK spot prices declining beyond the $590-620 net delivered
levels a week ago. Spot prices have posted a
cumulative $20 drop since June 30, according to P&PW polling. That's average a huge
37% delta to this month's preliminary effective list price of $980, which held flat.
BHK stocks reverse. During the
blackout month of May, when Brazil's IBA
withdrew data, BHK inventories had posted
a two day-of-supply increase. In June, a
month that ended the second quarter and
one in which BEK producers often unload
big shipments for financial reasons, stocks
shot back down two days, leaving World-20
stocks of BHK at 38 days.
A PPPC official said they obtained BHK
data from Brazilian producers directly, but
industry sources said not all Brazilian producers reported, and at least one firm hasn't
been reporting data all along. That means at
least some BEK data will likely have to be
estimated even if the PPPC is able to continue reporting BHK results each month
instead of the quarterly basis IBA proposed.
Poll: Stocks down 288,000 tonnes.
Still, with all data getting released with June
results, World 20 producer inventories' one
day-of-supply decrease corresponded to an
estimated 168,000-tonne drop month-overmonth, according to a P&PW poll of industry
analysts. That's more than double the typical
decline for June recorded over the past 10
years, and after May stocks were confirmed
at 4.503 million tonnes dropped estimated
producer inventories down to 4.335 million
tonnes through the end of June.
• Arauco, coming under heavy pressure from Chinese customers to lower market pulp prices, closed its July allocation
of bleached radiata pine down $40/tonne,
to $635/tonne net CFR, a company official
told P&PW. Arauco, whose executives and
agents took longer than usual to close July
prices, hammered out agreements with key
customers to close its August allocation early, with an additional $10 decline to $625
net CFR on August shipments, a company
executive said on July 23 in China. The firm
Wipe out damages.
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We partner with some of the world’s largest
producers to help them operate their supply
chains more efficiently and more reliably.
What can WSI do for you?
PPI PULP & PAPER WEEK/July 24, 2015
Integrated Logistics
Supply Chain Solutions
inquiryPPI@wsinc.com | 920.831.3700 | www.wsinc.com
© 2015 RISI, Inc. All rights reserved
9
closed its July allocation for unbleached
kraft pulp at $600/tonne net, unchanged vs
June levels. The firm didn't close its July
allocation or announce an August price
through late this week.
• Two Canadian market pulp producers reshuffled their most sr executives this
week, with Mercer International and
Fortress Paper announcing new CEOs.
Mercer International's Jimmy Lee stepped
down on July 20 as pres/CEO, replaced
by CFO David Gandossi. Lee will be exec
chmn of the company's board. Fortress
Paper is promoting Yvon Pelletier to pres/
CEO, effective Oct. 1. Outgoing CEO
Chadwick Wasilenkoff will move to a
newly created exec chmn position, where
he'll "focus on strategic initiatives to unlock
value for shareholders and to improve the
balance sheet," Fortress said in a statement.
News briefs
One of the US's largest check printers,
Deluxe, reported second-quarter net sales
increased 7.5% to $435.9 million. Deluxe's financial services revenue increased
19.1% and included the results of Wausau
Financial Systems which was acquired in
October 2014. For checks, the company
reported revenue of $40.9 million declined
5.1% "primarily to the secular decline in
check usage and the elimination of marketing expenditures that no longer met the
company's return criteria, partially offset
by higher conversion rates from email marketing offers and an improved call center
incentive plan," the company said. The
check unit's operating income increased
9.4% year-over-year to $15.2 million due
to a "higher mix of reorders and lower costs
which more than offset lower order volume," the company said… Consumers
for Paper Options along with Consumer
Action and National Consumer League
groups urged the US Securities and Exchange Commission (SEC) this week to rescind a new proposed rule allowing mutual
funds to no longer mail shareholder reports
and other investment information. Instead,
the information would be available online.
"Rule 30e-3 would make it more difficult
for many investors to access the reports
they need to make informed investment
decisions," said the three organizations in
their joint comments. "While we recognize
the trend towards a more digital world, it
is critical that government efforts to 'modernize' information delivery do not disenfranchise Americans who need or want
resources in paper format."… Pearson is
selling the Financial Times news group
to Japanese business media company Nikkei for $1.3 billion.
10
Supplier news
Reports
BASF will form a global business unit
combining all of its pigments activities effective January 2016. BASF's pigment business generates sales of about Euro1 billion.
The new global business unit will likely be
headquartered in the Ludwigshafen, Germany area… Barry-Wehmiller signed an
agreement letter this week to acquire the
Bielomatik group associated with the paper processing product line of Bielomatik
Leuze. Bielomatik manufactures paper processing equipment including sheeters, and
machines for wrapping, stacking, and packing, and makes stationery and binding machines incorporating binding technologies.
The combination is expected to be finalized
in upcoming months, Barry-Wehmiller said
in a release. Bielomatik's paper processing
product line that cuts, binds, finishes and
wraps paper is to merge with US-headquartered BW Papersystems, a supplier to the
paper and board sheeting, paper converting,
and corrugating industries. BW Papersystems, with Bielomatik, will employ more
than 1,600 workers globally and generate
revenue of more than $400 million… The
Chemours Company, which calls itself
the world's largest titanium dioxide producer, compled its spin-off from DuPont as an
independent, publicly traded corporation.
"We think of Chemours as a 200-hundredyear-old start-up," said Chemours pres/
CEO Mark Vergnano in a release.
RISI has created a new business division
called RISI Analytics that will formally
combine mill benchmarking cost information into price forecasts, the company said
this week. "By providing clients with cost
benchmarking data in our forecasts, along
with the tools to use it in their own analyses,
we will provide substantially better insight,"
said RISI Sr VP of analytics (formerly Economic Analysis and Mill Intelligence) Jon
Rager. "Analyzing the underlying manufacturing cost structure is critical to understanding what drives prices." "RISI economists
have long incorporated data from our cost
benchmarking service into their models.
However, we have never exposed that data
directly in our forecasts before," Rager said.
RISI CEO Charles Rutstein said the goal for
RISI Analytics is to provide "an integrated
view on cost drivers" and, ultimately, provide customers the "objective insight they
need to make the best business decisions."
The combined service will include all fiber,
graphic paper, and packaging coverage. Existing RISI clients will see differences in
their short-term forecasts this month, and
medium- and long-term forecast subscribers will see differences starting in October.
Customers of RISI forecast services will
gain access to RISI's cost benchmarking
services based on the regions, grades, and
the Economic Analysis products covered by
their subscription.
Copyright 2015 by RISI, Inc. All rights reserved. Reproduction in any form whatsoever forbidden without express permission
of copyright owner. PPI Pulp & Paper Week and Pulp & Paper Week are trademarks of RISI, Inc. and are registered in the
US Patent and Trademark Office.
Staff
Will Mies, Editorial Director, containerboard, kraft paper....................................................... wmies@risi.com; 510.922.8035
Greg Rudder, Editor, recovered paper, tissue, uncoated freesheet/specialty p-w............grudder@risi.com; 510.922.9504
Chris Cook, Deputy Editor, newsprint, coated, uncoated mechanical p-w............................ccook@risi.com; 510.922.1475
James McLaren, Sr. News Editor, boxboard....................................................................jmclaren@risi.com; 510.922.8816
Bryan Smith, Deputy Editor, global pulp..............................................................................bsmith@risi.com; 510.922.9012
Chris Lyddan, Contributing Editor, wood fiber, timber.........................................................clyddan@risi.com; 804.240.9227
Teresa Wann, Director of Production......................................................................................twann@risi.com; 510.735.9805
Paul Blackwood, Digital Publishing Specialist...........................................................pblackwood@risi.com; 781.734.8935
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1999 Harrison Street, Suite 2010, Oakland, CA 94612. Phone 510.922.8816, fax 510.879.7642
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Executives
Charles Rutstein..................................................................................................................................Chief Executive Officer
Matt Graves.......................................................................................................................................... Senior Vice President
Todd Petracek................................................................................... Vice President, Pulp & Paper, News, Markets & Prices
© 2015 RISI, Inc. All rights reserved
PPI PULP & PAPER WEEK/July 24, 2015
Determine containerboard conversion potential
for North American graphic paper machines
RISI’s North American Containerboard Conversion Study indentifies top
conversion candidates and potential impact on packaging papers markets.
North American graphic papers producers have been forced to remove close to 1.8 million tonnes of
capacity per year to keep pace with market decline. Consequently, many are eyeing more profitable
containerboard and packaging papers markets. With this study, you can:
VË Understand impact on competitive landscape, pricing and sources of supply containerboard markets
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conversion candidates
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VË ™ÝˆÝ˔ÖW†ËW?¬?W‰ÍßˉÄː‰jßË͝ËMjËWÄjaÊW™ÜjÁÍjaË?™aË݆ßË
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Request more information at www.risi.com/NAConversion