Coated Prices Ready for a Fall, or Not?
But, will capacity be removed? No one knows for sure. Coated mills have tended to have less discipline then the uncoated freesheet mills. Yet, with U.S. coated mills still under cost pressures from pulp and chemicals, and with margins where they are, coated paper producers may not have a choice—they may have to reduce capacity.
- First, this overview simplifies the picture. There is not one coated paper and one coated paper market. We have freesheet and mechanical (or groundwood), sheets and rolls, lightweight and heavyweight, commercial printing and publication markets.
- Second, there is a wild card. If the Euro fails, the U.S. dollar will be relatively strong, and as European economies collapse with the Euro, imports are likely to rise as U.S. demand declines further as collateral damage from the European collapse.
Jack Miller is founder and Principal Consultant at Market-Intell LLC, offering Need to Know™ market intelligence in paper, print and packaging. Previously, he was senior consultant, North America, with Pira International.
Known as the Paper Guru, Jack is the former director of Market Intelligence with Domtar, where he also held positions as regional sales manager, territory sales manager and product manager. He has presented at On Demand, RISI’s Global Outlook, PRIMIR, SustainCom World and at various IntertechPira conferences. Jack has written for Printing Impressions, Canadian Printer, Paper 360, PaperTree Letter and Package Printing, along with publishing a monthly e-newsletter, MarketIntellibits.
He holds a Bachelor of Arts degree in Economics from The College of the Holy Cross and has done graduate studies in Statistics and Finance.