Coated Groundwood

FutureMark Announces Closure if Buyer Not Found

  |   Coated Freesheet, Coated Groundwood

FutureMark has announced the closure of it’s 168,000 ton/yr Coated Recycled Paper plant in Alsip, IL if a buyer is not found.  The mill intends to make orders for 2 weeks before idling equipment.  FutureMark cited market conditions and energy costs as the reason.  We have seen a steep decrease in Coated Groundwood prices since last winter – as well as a steep drop in Demand.  Additionally, FutureMark wrestled with extremely high Natural Gas prices last winter.

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Coated Groundwood as We Head into Catalog Season

  |   Coated Groundwood

The soft Demand in 2014 has a chance to rebound during Catalog season, but Postal increases and weak GDP numbers threaten a big Fall. This is the first July 1 without a price increase announced on Coated Groundwood in a few years (although there was mixed success with these increases). The NewPage-Verso merger (which might take care of the over-supply situation) continues to be in limbo as analysts are becoming more dubious it will happen but progress is made with shareholders.

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Coated Groundwood Demand Soft

  |   Coated Groundwood

Demand continues to be soft in 2014 due to weak advertising and magazine circulation as well as reduced Catalog circulation due to Postal increases. Prices have stabilized after seeing 6 months of decreases. A lack of imported paper has not offset the reduction in Demand. An attempt to announce an increase by some mills was not supported by most. The NewPage-Verso merger (which might take care of the over-supply situation) continues to be on hold as Verso cannot get bondholders to accept their offers.

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Coated Groundwood Slide

  |   Coated Groundwood

Demand has been very soft thus far in 2014 due to weak advertising and magazine circulation as well as reduced Catalog circulation due to Postal increases. Prices have declined to numbers not seen in the past couple of years. A lack of imported paper has not offset the reduction in Demand. Everyone seems to be waiting for a NewPage-Verso merger to take care of the over-supply situation which would mean the Demand/Capacity equation won’t improve until next year.

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