N.A. Uncoated Free Sheet Markets Tighten up
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Grays Harbor and Domtar have recently announced closure of ˜2.7% of North American uncoated free sheet (UFS) capacity. According to Mark Wilde, senior analyst with Deutsche Bank, this will tighten the UFS market and should provide a much-needed boost to current industry pricing initiatives: $60/ton on cut-size, effective June 1 and $40/ton on offset, effective April 1. Estimated process for 20-lb repro bond fell $15/ton in May to $1,045 - $1,095, -3.8% y/y. Demand is lackluster: -3.7% y/y and -11.3% m/m in April, Wilde reports.
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