Duties and Rising Paper Prices
Actually, in this case, the duties have had little impact on coated paper prices in North America. Aggressive pricing from European mills has kept coated paper prices depressed. Many of the paper companies are publicly traded and you can see their returns. Newpage lost $674 million in 2010. The uncoated mills, Domtar and IP, are doing much better than coated mills. Consolidation and supply and demand are driving prices far more than are duties.
A complex picture indeed, and beyond the scope of this blog. But I did explore the subject of coated paper duties more fully in the May 2010 issue of Printing Impressions.
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.