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US Newsprint & Pulp Indexes (November 01, 2006)


November 1, 2006
By Pulp & Paper Canada

Paper industry news continues to be relatively better in Europe than in the U.S. Coated grades are still fighting with the Asia-oriented-over-capacity problems. In Europe, recent capacity reduction, b…

Paper industry news continues to be relatively better in Europe than in the U.S. Coated grades are still fighting with the Asia-oriented-over-capacity problems. In Europe, recent capacity reduction, both in LWC and CWF, are gradually improving the supply/demand ratios. In the other grades in the European market, demand is presently satisfactory and the year-to-date shipment growth exceeds the general economic growth. Compared to 2005, exports have been particularly active, in spite of the strength of the Euro. In specialties, the situation has been less good and closures of old, small units have continued in grades such as OTC. In the U.S. containerboard demand remains brisk and the uncoated free sheet market is OK, even if less bullish than a few months ago. In other grades, including offset rolls in the uncoated free sheet sector, consumption growth numbers are very small, totally flat or outright negative. Supply has remained well under control, though. The slowness of the activity has jeopardized the latest price increase initiatives.

U.S. newsprint market continues to show clearly negative demand numbers, month after month. August was no exception with another large drop in consumption of the dailies. Stora Enso has announced the restart of the Port Hawkesbury facility in Canada. Production started with SC-paper with the just under 200,000 tpa newsprint machine to be re-started later. The decline of the benchmark values continued, even if in a minute scale. The 30lb benchmark lost 30 cents or 0.06% and settled at 637.48 USD/ton. The 27.7lb benchmark lost 40 cents, also 0.06%, and closed at 680.34 USD/ton.

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