Paper Department

Sensing a Turnaround

There may be a base being formed with some of the lower grades of recovered fiber. Old corrugated is showing some modest signs of life. Prices look to be stabilizing in some regions. Several sources add that prices have even inched up in a couple parts of the country.

Mill prices are still far down from where they were last year, and statistical information still shows North American mills slashing production to bring supply and demand more into balance. However, there seems to be signs that more purchasing officials are looking to hold prices at their present level. There have been some concerns expressed earlier this year that a prolonged slump with rapidly falling prices could curtail new supplies.

The strength is happening despite some unsettling problems that continue to plague the industry. A strike at a number of Weyerhaeuser mills in the Northwest is creating problems for some packers in the Northwest. High energy costs on the West Coast also are resulting in difficulties for other paperboard mills, with reports that Inland Paperboard will be shuttering its California mill for a month.

Some exporters are holding out hope that Chinese buyers will come into the market in a larger way. There have been some reports of slightly stronger orders from China being made from the West Coast, although there are mixed signals on whether this trend is a short term blip or part of a longer term upward trend.

While low grades have been seeing some stabilizing, pulp substitutes and de-inking grades continue to show continued problems with demand.

Pulp prices continue to plummet, driving down prices for most pulp substitutes. De-inking grades are following suit, with sorted white ledger one of the hardest hit grades.

Mill prices continue to drop. Meanwhile, generation also is slipping due to a combination of a summer slowdown and reduced collection levels.

Mixed paper continues to be one of the biggest surprise grades as of late. Prices have held somewhat firm over the past several months. Demand remains constant, with many vendors reporting having little difficulty moving material.

Along those same lines old newspaper grades have held up fairly well. This despite several of the largest newsprint producers in North America cutting production schedules to bring supply and demand into balance.

KRUGER COMMITS TO PACKAGING

In Ontario, the operations of Craftwell Containers and Packaging Ltd., a Kruger affiliate company, have been integrated with the Kruger Rexdale plant’s operations. According to the company, the investments will allow modernization of the Rexdale plant’s corrugator and installation of a state-of-the-art multi-flute single facer, plus the purchase of a four-color unit with drying system for the recently installed McKinley die cutter.

And in Quebec, the Kruger LaSalle box plant will install a new three-color rotary die cutter press; the second within eight months.