In the meantime, North American coated groundwood market dynamics are improving, Wilde says. List prices on coated mechanical grades increased ˜$5/ton in May. Producers announced a $60/ton price increase effective early May/June 1. The price increase is driven by supply cuts (closure of Kruger's 170,000 metric tpy Trois-Rivieres mill in Canada and closure of Domtar's Columbus, Miss., mill in the U.S.) and significantly improved shipments (preliminary April shipments +22.2% y/y). "However, we caution that much of the gain in shipments owes to a 'lapping' of weak numbers from April 09 (-36.2% y/y), Wilde cautions.
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