Paper Market Update

Paper Market In Brief:

It’s finally time for some good news in the coated paper market. We had anticipated another coated paper price increase, but now that seems highly unlikely. A reduction in demand and drop in paper pulp prices have kept pricing steady, and this has given mills reasons to rebuild inventory—a welcome story after 12-18 months of increases. Coated paper prices should hold steady as lead times and inventory return to customary levels.

Uncoated mills are another story, however. The remaining uncoated mills are preparing for the shutdown of Georgia-Pacific’s uncoated paper mill in Port Hudson, LA. The shutdown of those machines in March will remove nearly 8% of the uncoated sheet market capacity, and will keep general allocations in place. We will continue to monitor the market and help our clients avoid disruption for the tons needed for both existing business and new business pursuits.

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