Uncoated Mechanical Paper Demand Remains Weak
 Print this article | Send to Colleague
North American uncoated mechanical paper demand remains weak, according to Wilde. Preliminary November shipments were down 15.1% y/y versus a YTD decline of 9.1% y/y. SC-A appears to be a bit weak, he adds. Producers are taking market downtime to prevent prices from slipping. Producers have also announced mill shutdowns—Newpage's 360,000 tpy PM 2 at Port Hawkesbury, N.S., and Verso Paper's 103,000 tpy at Sartell, Minn. In Europe, producers have shutdown ˜450K tpy of capacity this yr. "We ultimately expect Port Hawkesbury to restart under new ownership," Wilde says. Oversupply in the coated mechanical market, he points out, has forced some producers to run uncoated mechanical, putting pressure on the supply/demand balance. Uncoated mechanical prices were essentially flat m/m in November. Estimated directory prices were at $790 - $810/ton and SC-A at $845 - $880/ton.
|
|
