Check in here for timely updates from American Litho’s paper expert, Executive Vice President Chris Joyaux.
Volatility in the paper industry can hamper your ability to complete print projects in a timely, cost-effective way. To keep you informed, we bring you news and insights from paper expert Chris Joyaux.
It’s part of American Litho’s 360-degree commitment to help you reduce costs, increase relevancy and achieve greater print ROI.
Through our strategic partnerships with manufacturers and distributors, are confident we can offer you the quality stock you need at competitive prices.
Paper Market and Industry Trends
We have seen a number of price increases for all paper grades starting last July and the possibility exists this year. Below is the latest in market intel and trends.
- 40% of capacity is out since 2000.
- In the last 8 years, 1,240,000 tons have been removed from the paper industry
- In 2017 alone, 655,000 tons were removed because of Appleton and West Linn.
- Groundwood has lost 56% of its capacity since 2000.
- Of the top 5 remaining producers, only 2 are domestic (Sappi and Verso)
- Pulp is up $11/cwt since December 2016.
- Mills that do not produce pulp were Appleton and West Linn
- There was a graph of web prices from 2008 to 2018. Pricing is still below where it was in 2008.
- There is more volatility in pricing as you go down in grades.
- For the first time in US history, there were two Category 4 Hurricanes which made landfall.
- Discussion of the ELDs (electronic on board recorders) to record hours of service in trucks. This is reducing trucking capacity. Some smaller truckers just left the industry. Plus there is a shortage of drivers.
Every trucker can pick between 3 – 6 choices for his next load. Sappi is working hard to be the “Shipper of Choice”. Meaning that truckers do not have to wait to either load or unload. This was suggested for printers as well.
- PIA 2018 forecast projects print sales to increase 1.5 – 2.5% this year. Packaging, labeling, signage, POP, and direct mail are all segments expected to grow.
- Sappi and Catalyst are on web allocation NOW.
- Sappi is moving into the packaging world.
- Therefore, at the end of March through April, Sappi is taking 1 machine out of production to move it to packaging. That means 20% less product being produced in March.
OPINION I U.S. ECONOMY
February 9, 2018
Bloomberg released this report, the supply of truckers isn’t rising, so freight prices will soar and cut down demand. That’s bad for the whole economy.
SAPPI Paper Price Increase
January 31st, 2018
Effective on the first of this month, Sappi North American has begun a price increase on orders that have been booked with a delivery date on or after February 5.
This 4%-7% transactional price increase is relevant to the following products:
- McCoy Web
- Opus Web
- Somerset Web
- Flo Web
- Galerie Web
Coated Stocks Resolute Price Increase
January 31st, 2018
Effective March 1, Resolute Forest Products will raise its ResoluteGloss, ResoluteBlonde, and ResoluteBrite 76 papers by $40 US/st.
While this change in coated paper price was something American Litho anticipated last year, we continue to work strategically to minimize the impact on your brand.
Catalyst Paper Price Increase
January 31st, 2018
Beginning on the first of next month, the transaction price for several grades of Catalyst paper will be increasing by $2.00/cwt. The Coated Freesheet Grades increasing include Orion and Vision, while the Coated Groundwood Grades include Escanaba, Dependoweb, Capri, and Consoweb.
American Litho continues to watch and anticipate changes in Coated Stock pricing, partnering closely with supply chain partners to get you the greatest value.
Truck Shortage Forcing Companies to Cut Shipments or Pay Up
January 25th, 2018
We are working closely to monitor the nationwide trucking shortage. Factors like record-level freight volume and bad weather means the hard choice between:
- Postponing all deliveries
- Paying more to jump in front of the line.
Read more about the shortage here.
American Litho is working with national and local trucking partners to minimize costs increases and keep your shipments at the front of the line.