N.A. Coated Groundwood Markets Improving
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In the North American coated groundwood arena, a $40 - $60/ton May/June price hike has gained traction, Wilde of Deutsche Bank says. September estimated prices on No. 5, 40-lb offset rolls rose $5/ton to $855 - $895/ton. In August, prices increased $15/ton.
The two key drivers are recent capacity reductions (˜12% of the market—Verso's 180,000 tpy Sartell PM 3 and Resolute's 150,000 SC PM 1 at Catawba) and better-than-expected catalog demand (mostly No. 5, 40-lb grade, Wilde explains. "With prices on non-contract business even higher, we may see further price gains in October. The key downside risk is competition from lower priced SC grades," he notes.
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