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US Newsprint & Pulp Indexes – January 31, 2006


March 1, 2006
By Pulp & Paper Canada

In the paper industry, European demand growth appears to have been weak in December as already earlier suggested by Utipulp’s consumption numbers….

In the paper industry, European demand growth appears to have been weak in December as already earlier suggested by Utipulp’s consumption numbers.

Positive news from the paper industry is that stocks of paper appear low both in Europe as well as in the U.S. The price negotiations have been difficult and still continue. Newsprint prices have already inched up according to the PIX-index but the final verdict of the size of the increase will be known only after the negotiations are through and the shipments at old prices are no longer part of the picture. In other grades, the impact of the price talks is even less clear.

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Some further capacity cuts have been announced both in the U.S. and European markets. This will help the supply/demand balance and help to carry the industry over the typically quieter Q1 towards the seasonal pick-up in April-May.

In the U.S. newsprint market, the supply cuts continue to keep up with the continuing demand drop which helps to keep the supply/demand balance (operating rates) quite high. Inventories are reported to be normal/low. The earlier announced price increases, typically by 35 U.S.D/ton, continue to creep through. There have been some further upward changes reported in the quotes received, in both basis weights. The index for the 30lb news gained 39 cents/ton, or 0.06%, and closed at U.S.D 619.79/ton. The new PIX U.S. Newsprint 27.7 lb (45g/m2) benchmark showed a similar movement and climbed by 29 cents/ton, or 0.04%, to 662.97 U.S.D/ton.

ABRIDGED VERSION. FOR COMPLETE INFORMATION, PLEASE VISIT THE FOEX WEBSITE AT WWW.FOEX.FI


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