Coated Paper Markets Gain Strength in North America
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In the North American coated paper sector, Mark Wilde of Deutsche Bank reports that the LWC (lightweight coated) paper market is showing signs of some strength. Estimated prices on No. 5, 40-lb offset rolls were up $15/ton to $850 - $890/ton in August. Producers had announced a $40-60/ton price hike for May/June.
The key driver behind the positive price gains, Wide notes, is improved demand/supply balance from ˜12% reduction in capacity (Verso's 180,000 tpy Sartell PM 3 and Resolute's 150,000 supercalendered machine No.1 at Catawba.) July shipments were +0.3% y/y (YTD -2.8%).
August No. 3 60-lb CFS (coated free sheet) prices were flat m/m at $965 - $985/ton. Producers failed to implement the $30/ton May price increase. July shipments improved modestly, down -0.9%, Wilde reports.
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