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Could paper prices be on the rise….AGAIN!?

Ok, make sure you are seated and hanging on to something because this announcement is sure to make you fall over…..

Two paper mills (Verso and Kruger) have announced paper price increases effective 4/1/2011. They will be increasing prices on all coated paper grades by $2.00 per cwt. We will have to wait and see if the other paper mills join with this push to increase paper costs…. I wouldn’t hold your breath, they usually stick together on this type of thing.

Ready for even more worse news? Here is a title of an article and some main points that will affect you if you are on a Supercalendar paper stock:

Fire at Norske Skog’s Saugbrugs SC paper mill in Norway causes longer-term production cutbacks

“All production facilities at the mill were stopped due to the fire. Normal production has subsequently been started at one paper machine (PM4), which produces about 10 000 tonnes per month. Norsk Skog Saugbrugs will have a loss in production of about 30-35 000 tonnes per month (PM5 and PM6). Normal production from these machines is not likely until the end of June.”

FYI Norske puts approx 100,000 MT per year into North America of their 550,000 mt from this mill. Point being; availability of this grade (SC – supercalender) could be a problem.

So there you go, I hate to be the bearer of bad news, but in order to keep you ahead of this I thought it to be appropriate to let you all know. Expect a rise in paper prices on all coated stocks. Since we at JB Kenehan don’t just buy our stock from one supplier, we are able to provide a wide variety of paper grades and basis weights to economically help you work through this uncertain and ever changing paper market. Talk to your representative about how this will affect you and what solutions are available.

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February 18, 2011 - Posted by | Publishing | , , , , , , , ,

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