Below is an update to the recent mill price increase announcements ... announcements from Sappi, Kruger, UPM and Fraser Papers were added along with another chemical company increase. West Linn Paper Company is rumored to be announcing their increase on Monday.
(6/5/08) Due to increasing energy and raw material costs, effective with new orders entered June 6, 2008 for confirmed delivery dates on or after June 9, 2008, Sappi Fine Paper North America is increasing prices $3.00/cwt (US and CN) on the following products:
Effective with new orders entered June 6, 2008, for confirmed delivery dates on or after June 30, 2008 Sappi Fine Paper North America is increasing National List prices $3.00/cwt (US and CN) on the following products:
As previously announced on April 24, 2008, the third $1.00/cwt increase will be effective for confirmed delivery dates on or after July 1, 2008 on the following products:
Kruger Announces $3.00/cwt Coated Price Increase - Official Mill Announcement:
(6/2/08) Please be advised that effective with orders shipping on or after July 1, 2008, Kruger Inc. will be raising the price on all coated paper grades.
This increase will apply to all coated mechanical grades from either the Trois Rivieres Mill or Wayagamack Mill and includes the following:
| Krukote Offset | Increase of $2.50cwt |
| Krukote Roto | Increase of $2.50cwt |
| Krukote Matte | Increase of $2.50cwt |
| Krukote 76 | Increase of $2.50cwt |
| Krukote 76 Matte | Increase of $2.50cwt |
| Krukote 80 | Increase of $2.50cwt |
| Krukote 80 Matte | Increase of $2.50cwt |
Further to this announcement, effective with shipments on July 1st, Kruger will change its billing to reflect gross weight instead of net weight.
UPM Announces $3.00/cwt Finesse Increase:
(6/5/08) UPM announced a $3.00/cwt increase on all Finesse products. (details to follow)
Fraser Papers Announces $3.00/cwt Price Increase:
(5/30/08) Fraser Papers announces a $60/short ton increase on Freesheet Lightweight Opaque (40# and lower Snowbrite, Snowland, Custom, Gorham, Pharmopaque, etc.) and HiBrite Groundwood (Bridge, Frontier, Frabrite) grades.
NewPage Announces $3.00/cwt Coated Price Increase . Official Mill Announcement:
(May 30, 2008) The NewPage Corporation has been undertaking extensive efforts to reduce our overall costs and improve our productivity through the deployment of Lean Six Sigma. Many of these efforts have been directly targeted at reducing the effects of inflation from soaring costs of inputs to our manufacturing processes. Unfortunately, the efforts that we have made have been unable to offset the impact of swelling input costs of well over 20%.
As a result, the following price increase will apply to all web and sheet-fed products for all newly entered orders on or after May 30, 2008 and for all existing orders with confirmed delivery dates July 7, 2008, or later:
Grade Increase Amount
Also, the following price increase will apply to all web and sheet-fed products for all newly entered orders on or after May 30, 2008 and for all existing orders with shipments July 1, 2008 or later:
Grade Increase Amount
In addition to this price increase announcement, in few days we will be issuing new Customer Freight Charge Tables. The updated Customer Freight Charge Tables will reflect the increasing costs for shipments to the highest cost to serve destinations.
We understand that these price increases are difficult for our customers, but, the current economics are not sustainable. We appreciate your support of NewPage and we will continue to strive to earn your business.
If you have any questions, please contact your NewPage Sales Professional.
Domtar Announces $3.00/cwt Coated Price Increase . Official Mill Announcement:
Lightweight Coated Groundwood Papers Price Announcement - Please Distribute
Effective with shipments on and after July 2, 2008, we will increase pricing on our ChoctawŽ and Saturn. brands and all related coated groundwood products in all weights and finishes by $3.00/cwt.
In addition, the delivery charge to be applied on orders placed to ship by truck but are entered in quantities that require a partial truckload shipment to complete the order will increase to $300.00.
Domtar Announces $3.00/cwt Uncoated Price Increase . Official Mill Announcement:
Effective with shipments July 1, 2008:
Irving Paper Corp Announces $3.00/cwt SCA Price Increase . Official Mill Announcement:
(5/29/08) Please be advised that with all shipments effective July 1st, 2008 Irving Paper is raising the price of its Uncoated Groundwood paper grades (Radiance, SCA and SCB qualities) by US $60.00/ST. This increase is based on 35#; all other basis weights will be adjusted accordingly.
Verso Paper Corp Announces $2.50/cwt Price Increase - Official Mill Announcement:
(5/29/08) Effective with all orders entered on or after May 29, 2008, and all orders shipping on or after July 1, 2008, Verso Paper is increasing the transaction price of all of our coated freesheet, coated groundwood and supercalendered papers, including, but not limited to, the following brands:
Coated FreesheetInfluence All grades/basis weights/finishes $2.50/cwt ($50.00/US short ton)
Velocity All grades/basis weights/finishes $2.50/cwt ($50.00/US short ton)
Coated GroundwoodLiberty All grades/basis weights/finishes $2.50/cwt ($50.00/US short ton)
Advocate All grades/basis weights/finishes $2.50/cwt ($50.00/US short ton)
SupercalenderedTrilogy All grades/basis weights/finishes $2.50/cwt ($50.00/US short ton)
Verso Paper has been faced with, and continues to experience, significant increases in the costs of energy and raw materials. In response, Verso has put in place ongoing, rigorous programs to aggressively fight cost inflation and drive out waste from our manufacturing system. We have implemented capital projects that reduce our use of expensive raw materials and energy. Verso also has made operational improvements that enhance the efficiency and cost-effectiveness of our papermaking processes. Despite these efforts, Verso.s manufacturing costs have continued to rise as the costs of many of our key inputs . especially energy, wood, fiber, transportation and petroleum-based raw materials . have increased.
We at Verso understand that our price increase will have an impact on your business, but in these times of substantial cost inflation we are left with little choice but to increase our prices, if we are to continue to operate in a sustainable manner.
Should you have any questions, please contact your Verso professional sales representative. Thank you for your continued support. (Source: Verso)
AbitibiBowater Hikes Uncoated Mechanical Papers by $60/ton in NA
SAN FRANCISCO (May 27, 2008) AbitibiBowater told North American customers today that it intends to implement a $60/ton third quarter price increase on all uncoated mechanical paper products.
The increase applies to all basis weights, calipers and finishes of high brights, book, directory and all supercalendered (SC) grades effective with July 1 shipments.
In a letter to customers, AbitibiBowater cited "serious cost inflation" especially in the areas of power, transportation, and fiber, and described woodchip availability as "scarce and extremely costly" in some mill locations. The letter described the company's current economic position as "not sustainable" despite its success in lowering average production costs across its asset base. (Source: RISI)
(6/2/08) We are announcing a $50 US/CAN per short ton price increase effective July 1, 2008, for all our coated mechanical grades, including but not limited to AbiBow Gloss, Brite 76 and 80 and Max.
This increase is necessitated by well documented input cost pressures for energy, chemicals, fiber and transportation. We fully understand the impact on users of this rapid restoration of paper prices but despite important progress in achieving our synergy goals, the current economics leave us with no other alternative.
St. Marys Paper Company Announces $3.00/cwt Price Increase . Official Mill Announcement:
(5/30/08) Effective with July 1, 2008 shipments, St Marys will increase the price of all basis weights of our SC grades Sequence, Sequel and Synpress by $3.00 cwt. The price increases are necessary to sustain our company during these challenging economic times as we prepare to serve you for many years to come.
We will continue to implement cost saving measures whenever possible that do not negatively impact our quality and service to you. We are proceeding through the regulatory approval stage for a renewable biomass cogeneration facility to be constructed adjacent to our mill commencing mid 2009. This facility will bring substantial financial and operational benefits, which, when added to the positive changes implemented on restart of the mill will propel St Marys to the front of the pack in the SC grade.
St Marys appreciates your support. We understand that we are in this together and will do all we can to support your efforts to succeed in a very difficult business climate. (Source: St. Marys Paper Company)
Pine Bluff Announces $3.00/cwt Price Increase - Official Mill Announcement:
(5/30/08) Effective with orders shipping on or after July 1, 2008, Evergreen Packaging.s Pine Bluff Coated Paper Division, is increasing the transaction price of all coated groundwood products by $3.00cwt ($60.00/US short ton).
This increase applies to all coated groundwood products including, but not limited to, the following brands:
| TruSpec 4 | All basis weights and finishes |
| TruSpec 4.5 | All basis weights and finishes |
| TruSpec 5 | All basis weights and finishes |
In addition to this announcement we are making a change to our Billing Policy. Effective July 1st our products will be billed on a Gross Weight basis vs. Net Weight basis. (Source: Evergreen Packaging)
Appleton Coated Announces $3.00/cwt Price Increase - Official Mill Announcement:
(6/2/08) Effective with shipments July 1, 2008 or later, Appleton Coated will be increasing prices by $3.00/cwt on the following web and sheet grades:
Our operating costs have risen sharply due to the significant increases in all of our major input costs including raw materials, energy and transportation costs. Appleton Coated has put significant effort and resources into operational improvements and cost reduction initiatives and continues to do so, but we are simply not able to offset the sharp rise in all of our costs to manufacture and deliver our products.
Myllykoski North America Announces $3.00/cwt Price Increase - Official Mill Announcement:
(6/3/08) Please be advised that Myllykoski North America will be increasing transaction prices on all Uncoated Mechanical grades. These increases are effective with U.S. shipments (from the domestic mills or a port of entry) on or after July 1, 2008.
| MY LP-T | All Basis Weights | $60/ton or $3.00/cwt |
| MY SYMMETRY | All Basis Weights | $60/ton or $3.00/cwt |
| MY PLUS | All Basis Weights | $60/ton or $3.00/cwt |
| MY GOLD | All Basis Weights | $60/ton or $3.00/cwt |
| MY JOY | All Basis Weights | $60/ton or $3.00/cwt |
(6/3/08) Please be advised that Myllykoski North America will be increasing transaction prices as outlined below. These increases are effective with U.S. shipments (from a domestic mill or a port of entry) on or after July 1, 2008
| MY CONNECTION | All Basis Weights | $60/ton or $3.00/cwt |
| MY CLASSIC | All Basis Weights | $60/ton or $3.00/cwt |
| MY EXTRA | All Basis Weights | $60/ton or $3.00/cwt |
| MY SILK | All Basis Weights | $60/ton or $3.00/cwt |
| MY BRITE | All Basis Weights | $60/ton or $3.00/cwt |
| MY STAR | All Basis Weights | $60/ton or $3.00/cwt |
| MY BRILLIANT | All Basis Weights | $60/ton or $3.00/cwt |
(all finishes and rotogravure and offset versions of all grades are included)
Finch Announces $3.00/cwt Price Increase
(6/3/08) Due to sustained increases to our manufacturing input costs . including fiber, energy, and chemicals - we will increase the pricing of all Finch products by $3.00/cwt, effective with shipments Monday, June 16, 2008. Orders acknowledged by May 30, 2008 will be shipped and invoiced at the acknowledged price.
Blue Ridge Paper Products Announces $3.00/cwt Price Increase - Official Mill Announcement:
(June 2, 2008) Effective with shipments July 1, 2008, we will be increasing the price of the following grades by $3.00/cwt:
Boise Announces $3.00/cwt Price Increase - Official Mill Announcement:
(June 4, 2008) As a revision to our price increase announcement dated May 27, 2008, please note the following changes:
Lincoln Announces $3.00/cwt Price Increase - Official Mill Announcement:
(6/5/08) 2008 has proven to be a challenging year for all manufacturing sectors, but most certainly for those of us engaged in the production of paper. Manufacturing costs have reached unprecedented levels driven primarily by significant increases in chemical, fiber, and fuel inputs.
We continually strive to gain efficiencies in order to mitigate fluctuations in production costs; however, these costs have simply risen to levels where we are unable to continue to absorb them.
Therefore, please be advised that effective with new orders, with confirmed ship dates after July 7, 2008, Lincoln Paper & Tissue will institute a $3.00/cwt increase across all product categories. This includes:
NewPage Corporation today announced that it will take approximately 25,000 tons of coated paper market-related downtime in June and July throughout its mill system. Several machines will be involved, and each will take advantage of specific times to complete planned maintenance and capital work.
Moreover, NewPage had announced in March that it would continue running PMs 43 and 44 paper machines at Niagara Mill until the fall of 2008 (as opposed to the previously scheduled closing in April) due to unusually high market demand earlier this year. However, based on changing market conditions, the Niagara facility will permanently close the paper machines on July 12. This will reduce production by an additional 50,000 tons. The Niagara machines produce lightweight coated groundwood papers used in magazines and catalogs.
"We have been observing an increase in coated paper inventories at a number of printers, along with a slowdown in demand as advertisers deal with an uncertain economy," said Rick Willett, president and chief operating officer. "Since we are committed to balance our production to consumption, we are diligently taking steps to reduce our production over the next two months."
This downtime and closure of the Niagara Mill paper machines are in addition to the permanent closure of two paper machines announced as a part of the company's integration plans, comprising approximately 230,000 total annual tons of capacity:
"We remain committed to our customers and will continue to offer a broad portfolio of printing papers to meet a wide variety of needs," said Barry Nelson, senior vice president of sales. "Products produced on the closed machines have been transitioned to more efficient paper machines within our integrated mill system. Customers were notified of our plans at the time of our integration restructuring announcement January 16. At that time, we began diligently working with individual customers to transition their business to other machines through a product qualification and trial process. With our announcement of market-related downtime, it is clear that our recent price increase is not supply and demand driven; rather solely to offset increased inflationary costs from energy, raw materials and transportation." (Source: NewPage)
SAN FRANCISCO (June 2, 2008) Catalyst Paper informed North American customers today that it would increase the price of all grades of telephone directory paper by $60/ton effective July 1. The increase would be applied to all orders not covered by contracts or other agreements, the company said.
Catalyst said the increase, the first for directory in nearly 18 months, was made necessary by rising costs for fiber, energy and transportation and the negative effect of currency exchange rates.
Catalyst is the largest telephone directory paper producer in the world, with more than 350,000 tonnes/yr of production at its mills in Crofton and Port Alberni, B.C.
The company has already announced July 1 increases of $60/ton for coated and uncoated mechanical grades and $60/tonne for newsprint. (Source: RISI)
SAN FRANCISCO (June 2, 2008) Two more North American containerboard producers today have informed customers of $55/ton price increases on linerboard and corrugating medium for July 1.
The latest to announce price increases are Temple-Inland and Rock-Tenn, according to market contacts. Last week Georgia-Pacific, Smurfit-Stone, International Paper, Weyerhaeuser, Packaging Corp. of America and Norampac (Cascades) told customers of the price hikes.
Temple-Inland is the fourth largest North American containerboard producer, while Rock-Tenn ranks No. 8 in capacity following its acquisition of Southern Container (including Solvay Paperboard) earlier this year. Norampac, the biggest Canadian supplier and No. 6 in North America, raised its price late last week.
Together the eight largest North American companies represent 78% of industry capacity. (Source: RISI)
SAN FRANCISCO (May 30, 2008) Most major North American producers this week have now announced $55/ton price increases on containerboard for July 1.
Latest to inform customers of price hikes are International Paper, Weyerhaeuser, and Packaging Corp. of America, according to market contacts.
Georgia-Pacific and Smurfit-Stone were first on Wednesday to announce the price increases on linerboard and corrugating medium. The five producers represent nearly 65% of North American industry capacity.
Contacts say the rapid-fire announcements, unusual amount of the increase, and timing reflect producers determination to offset escalating energy-related costs after a $50/ton price increase failed to take hold in early March. (Source: RISI)
SAN FRANCISCO (May 30, 2008) Major North American uncoated freesheet producers Domtar, Boise and Glatfelter this week scheduled new price increases effective in June-July.
Boise on Tuesday announced a $3/cwt ($60/ton) price increase effective on orders placed May 27 and on shipments effective June 9. The company cited "significant cost increases in energy, chemicals, transportation, and fiber" for the higher prices on its Boise branded and private label papers, including cutsize, rolls and sheets.
Domtar told customers Thursday it would raise cutsize prices $3/cwt effective June 16. The company also said it would increase offset rolls by the same amount effective July 1. A source said the different dates recognize the transactional nature of the cutsize market in contrast with more contractual business for offset rolls.
Domtar and Boise are the first and third largest UFS producers, accounting for an estimated 40% of North American production. The second and fourth largest suppliers, International Paper and Georgia-Pacific, had not yet announced price intentions, contacts said mid-day Friday.
Pulp & Paper Week learned late-Friday that Glatfelter, the fifth largest UFS producer, told customers it will raise transaction prices on all its book publishing papers by $3/cwt effective with July 1 shipments. The company said post consumer waste recycled content grades will be adjusted to reflect a $2/cwt upcharge for each 10% of PCW content. (Source: RISI)
WILMINGTON, DE, Jun. 5, 2008 (Business Wire) - Effective June 16, 2008, the Paper Technologies and Ventures group of Hercules Incorporated will initiate price increases in North America of up to 30% on all products with particular focus on functional chemistries such as sizing, wet strength, and retention/drainage aids.
Chet Cross, Director and General Manager - Americas, Hercules Paper Technologies and Ventures stated, "The pace and level of price increases for most raw materials, in particular those linked to oil, natural gas and agricultural commodities, have been unprecedented. We have seen many raw materials increase over 100% since last year. Recent high profile announcements by several major chemical commodity producers to immediately increase prices by up to 25% only compound the situation. We also have concerns about the availability for several key raw materials. We continue to leverage our global position in all commodity areas and continue to focus on our cost control and productivity initiatives."
Hercules manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. (Source: RISI)
June 2, 2008 - Omya Inc. has announced a price increase of 8-10%, depending on grade, for all ground calcium carbonate grades sold to the North American paper industry. The increase includes products used for both filling and coating applications, Omya said. Omya noted that costs for energy, dispersants, biocides, freight and mining have risen at an alarming rate, making the price hike necessary to recover a portion of these increased costs. (SOURCE: Omya Inc.)
(May 28, 2008) The Dow Chemical Company (NYSE: DOW ) announced today that on June 1 it will raise the price of all of its products by up to 20 percent - depending on their exposure to rising energy, feedstock and transportation costs. and will review all terms to all customers.
Andrew N. Liveris, Dow chairman and CEO, said the sweeping price increases and reviews are essential as the Company attempts to mitigate the extraordinary rise in energy and related raw material costs.
"Our first quarter feedstock and energy bill leapt a staggering 42 percent year over year, and that trajectory has continued, with the cost of oil and natural gas climbing ever higher," Liveris said. "The new level of hydrocarbons and energy costs is putting a strain on the entire value chain and is forcing difficult discussions with customers about resetting the value proposition for our products."
Dow spent $8 billion on energy and hydrocarbon-based feedstock costs in 2002. At the current rate, those costs would climb to $32 billion this year.
"In addition to these price increases," Liveris said, "the Company is continuing its aggressive cost-control plan internally and is accelerating its existing top-down competitiveness review for all of its businesses and manufacturing facilities in the light of these new feedstock and energy prices."