--- title: December 2017 Paper Market Update description: LSC Communications Monthly Paper Market Update December 2017  Industry News World Trade Organization Upholds Existing Antidumping and Countervailing Duties image: https://blog.callkodi.com/hubfs/lsc_blog_media/2017/Untitled-design-27.jpg --- [![CJK Group](https://blog.callkodi.com/hubfs/raw_assets/public/LSCCommunications_March2021/images/LSC_logo_white.svg "CJK Group")](https://blog.lsccom.com) Blog - [LSC Insights](http://blog.lsccom.com/tag/lsc-insights) - [Industry News](http://blog.lsccom.com/tag/industry-news) - [Postal](http://blog.lsccom.com/tag/postal) - [Paper Market](http://blog.lsccom.com/tag/paper-market) - [About Us](https://info.digitallizard.com/about-us) - [Resources](http://blog.lsccom.com/tag/resources) - [Subscribe](https://share.hsforms.com/1C5tKZajoQ6W0geQ3cZxKZQ3vj6x) - [LSC Insights](http://blog.lsccom.com/tag/lsc-insights) - [Industry News](http://blog.lsccom.com/tag/industry-news) - [Postal](http://blog.lsccom.com/tag/postal) - [Paper Market](http://blog.lsccom.com/tag/paper-market) - [About Us](https://info.digitallizard.com/about-us) - [Resources](http://blog.lsccom.com/tag/resources) - [Subscribe](https://share.hsforms.com/1C5tKZajoQ6W0geQ3cZxKZQ3vj6x) # December 2017 Paper Market Update ### [Industry News](https://blog.callkodi.com/tag/industry-news) December 18 , 2017 - - [LSC Communications Monthly Paper Market Update December 2017](https://blog.callkodi.com/file.axd?file=/2017/LSC-Communications-Monthly-Paper-Market-Update-December-2017.pdf)  Industry News World Trade Organization Upholds Existing Antidumping and Countervailing Duties Against Imports of Certain Coated Paper from Indonesia - *Duties (38% total) originally imposed on Oct. 2010 will remain in effect; applies to coated paper in sheet form* - [*http://investor.versoco.com/2017-12-07-WTO-Panel-Upholds-the-Imposition-of-Antidumping-and-Countervailing-Duties-on-Imports-of-Certain-Coated-Paper-from-Indonesia*](http://investor.versoco.com/2017-12-07-WTO-Panel-Upholds-the-Imposition-of-Antidumping-and-Countervailing-Duties-on-Imports-of-Certain-Coated-Paper-from-Indonesia)   SAPPI Invests in Paper Machine at Cloquet, MN mill - *$5.94MM investment to rebuild headbox on PM 12* - *Dilution profiled headbox will improve product quality on graphic papers and packaging products* - [*https://www.sappi.com/sappi-north-america-invests-594-million-cloquet-minn-mill*](https://www.sappi.com/sappi-north-america-invests-594-million-cloquet-minn-mill)   Appleton Coated Restarts on Limited Basis - *Recently idled mill starts up one of three paper machines* - *Production limited to brown medium and inkjet book only* - [*http://*](http://www.wbay.com/content/news/Appleton-Coated-restarting-machine-calling-back-50-workers-462374913.html)[*www.wbay.com/content/news/Appleton-Coated-restarting-machine-calling-back-50-workers-462374913.html*](http://www.wbay.com/content/news/Appleton-Coated-restarting-machine-calling-back-50-workers-462374913.html)   Norske Scog Enters into Structured Auction Process - *Largest creditor forces action as best path forward* - *7 paper mills will continue to operate as new ownership is sought* - [*https://www.reuters.com/article/norske-skogsind-ma-aker/update-2-end-of-road-looms-for-norske-skog-as-aker-seeks-to-buy-paper-mills-idUSL8N1NT1F3*](https://www.reuters.com/article/norske-skogsind-ma-aker/update-2-end-of-road-looms-for-norske-skog-as-aker-seeks-to-buy-paper-mills-idUSL8N1NT1F3)   Forest Stewardship Council Publishes Revised Trademark Standard - *Revised standard specifies requirements for use of FSC trademarks, for promotion of FSC certified products and for promotion of organization’s status as an FSC certificate holder* - *New standard effective 3/1/2018* - [*https://us.fsc.org/en-us/newsroom/newsletter/id/1010*](https://us.fsc.org/en-us/newsroom/newsletter/id/1010)   Uncoated Freesheet and Groundwood Focus - Capacity reductions on uncoated freesheet as a result of closure of West Linn and Appleton Coated plus announced paper machine closure by Georgia Pacific and conversion by PCA both in Q1 2018 will have removed approximately 8% of North American uncoated freesheet capacity. - Trade case against Canadian producers of newsprint and high bright groundwood grades could result in price increases and possibly even capacity reductions as a result of duties placed on paper coming to US. - Both circumstances combined could result in longer lead times and/or higher prices for both product segments (SC papers excluded). Grade substitution could be possible and add to lead times to one product segment or the other. - A new round of price increases in early stages in both segments have been announced since December 1 (Verso, Twin Rivers, Resolute). - Forecasting and early planning of print projects key to reduce impact.   Mill Operating Rates (shipments to capacity - not seasonally adjusted)  ![December-Paper-Market-1-300x232](https://blog.callkodi.com/hs-fs/hubfs/lsc_blog_media/2017/December-Paper-Market-1-300x232.jpg?width=300&name=December-Paper-Market-1-300x232.jpg)   Product Segment Commentary   **Coated Freesheet** - Lead times 6 – 10 weeks; Q4 operating rates in high 90’s due to seasonal demand and loss of West Linn, Appleton Coated - Near to mid-term forecast is for mills to operate at or close to full capacity which will make it hard to replenish inventory - SAPPI conversion project at Skowhegan mill will remove 30 days of production from 1 of 3 paper machines in Q1 2018 - 2 nd $2.00/cwt price increase of 2017 announced for November 1 will be fully implemented by January 1.   **Coated Groundwood** - Lead times 4 – 8 weeks; Q4 operating rates in high 90’s to over 100 due to seasonal demand and July capacity loss - $1.00/cwt increase announced for October 1 will be fully implemented by January 1 - UPM PM5 closure at end of Q1 2018 will keep remaining capacity busier in H1 2018 than historical averages   **Uncoated Freesheet** - Lead times 3 – 6 weeks; operating rates near 90% - Outlook for Q1 2018 is that capacity reductions could result in longer lead times and possible price increases - Decreased supply to West Coast coming in 2018 could require longer lead times and/or freight considerations **Uncoated Groundwood** - High bright ground grades lead times 6 – 10 weeks; newsprint lead times 6 – 8 weeks; SC lead times 4 – 6 weeks - High brights impacted by earlier capacity reductions; NorPac trade case rulings expected 1/8/18 and 1/16/18, could result in significant duties against Canadian producers - Newsprint capacity closures resulting in high operating rates and higher prices for near to mid-term - Demand for SC grades falls off after holiday advertising season.   Tags: [Industry News](https://blog.callkodi.com/tag/industry-news) ![Meaghan Dickinson](https://blog.callkodi.com/hubfs/Imported_Blog_Media/logo_grey.png) Meaghan Dickinson Marketing Manager [send e-mail](mailto:) Contact us #### Send us a message To get in touch with us, fill out the form below and we will reach out to you as soon as possible. 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