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Paper Market Pricing 06-14-10
Monday, June 14, 2010
The paper market for publications grades has, at this point, kicked into high gear. Backlogs for coated groundwood grades (#4’s and #5’s) are out by as many as 10 weeks and backlogs for coated freesheet grades are out approximately 6- 8 weeks. What does this mean for us? It means that if we are looking to secure paper for any new job printing within a 8 week window, it is critical that we double check with estimating (and paper) to assure we can secure paper. The heavier weight groundwood grades are especially tight in large part because there are limited mills who manufacture these weights and grades.

Pricing, as you know has increased. A common question we are asked is “are the price increases sticking?”. The answer is, yes. Although some mills have made a few adjustments on certain weights and grades, prices are moving up. The driving factors behind these increase are:

  • Reduced capacity in the market (helping to balance demand).
  • Seasonal increase in orders.
  • Reduced mill inventories

What will the balance of the year hold? With many of the mill still facing cost pressure and losing the black liquor tax credit, expect the mills to try for one more increase this year. Normally we would expect to see that at the beginning of a quarter but we could see that as early as September 1st.

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2 Comments

  1. Anthony Rogers

    6 August 2010

    I would like to know more about your company. I'm in the industry of recycling. I'm new to this so I would like some pointer from someone who knows the business. I'm going to start with papers like occ. I would like to know where I can get the yellow sheet from or the market sheet for paper priceing. I'm new so please bare with me on my wording.

  2. Bill Cunningham

    10 August 2010

    Quote:
    Anthony Rogers
    I would like to know more about your company. I'm in the industry of recycling. I'm new to this so I would like some pointer from someone who knows the business. I'm going to start with papers like occ. I would like to know where I can get the yellow sheet from or the market sheet for paper priceing. I'm new so please bare with me on my wording.


    Thank you for your comment, Anthony.
    Hi Anthony -
    Not sure what you are looking for here.
    As you know the paper business is very vast with many grades and types of paper.
    Different papers are recycled for different uses.

    As for pricing, you may want to start with one or two of these:

    http://www.risiinfo.com/

    http://www.recycle.cc/

    http://www.recycle.cc/psrpage.htm

    For more questions please email contact.us@bpc.com

    Thanks,
    Bill

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