More Domestic Paper Price Increases Announced

The North American paper manufactures are at it again.  Recently, a new wave of price increases have been announced. Here is what we are seeing from the likes of Verso Paper, NewPage, Sappi, AbitibiBowater, West Linn, etc:

Coated freesheet (CFS):  4 – 5% increase
Coated groundwood (CGW):  5.5 – 7% increase

Some grades, such as supercalendared (SC) will see increases as high as seven to 10%. Most of these announcements take effect with shipments on or after September 15, 2010. All brand extensions, basis weights and finishes are included in these announcements.

These latest increases come at a time where operating rates on CGW products are still very high and lead times are still six weeks for some products. Operating rates for CFS products at some mills are still high, although we are beginning to see a slowing of demand as the busy season for paper making begins to come to an end.

You may have also heard that some mills recently announced dramatically low second quarter earnings. Coincidence? I think not. The North American mills are still hurting from the loss of the Black Liquor tax credit and they are looking to make up that loss with high prices.

If you have questions about how your paper pricing will be affected by these increases, please feel free to contact me at 800-558-8724.

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• north american paper mills
• paper
• paper prices

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