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Paper Market Update | August 2024

Newsprint Prices Set to Rise as Major Producers Announce Increases

North America’s largest newsprint producer, Resolute Forest Products, has announced a $50 per tonne price increase, effective September 1. White Birch, Kruger, NORPAC and Alberta Newsprint have all set the 
same price hike for their 45-g newsprint, also effective September 1. White Birch attributed its price increase to higher input costs, stabilizing demand in North America, and rising prices in global markets. Kruger cited inflationary pressures and increased demand for its products as the driving factors for its decision. These mark the first newsprint price increases in the U.S. since September 2022, according to RISI. 

North American UFS Demand to Rise as Supply Declines

North American uncoated freesheet (UFS) demand is expected to increase in the coming months, partly due to the upcoming U.S. elections. However, domestic supply will decline as Paper Excellence’s Domtar has halted UFS production at its Ashdown, AR, mill, converting its Paper Machine No. 62 into pulp production. This conversion removes 216,000 tons, or about 3.5%, of North American UFS capacity. Additionally, Bio-Pappel’s McKinley Paper plans to shift packaging production from its Port Angeles, WA, mill to its Combined Locks, WI, mill where it currently makes some UFS paper. 

Lindenmeyr Munroe Expands into Georgia with New Distribution Facility

Lindenmeyr Central’s sister company, Lindenmeyr Munroe, will expand its operations into Georgia with a new distribution facility in Atlanta. The Lithia Springs warehouse will be fully stocked and will utilize a nightly 
shuttle system to access additional inventory from other Lindenmeyr Munroe locations, serving the region's commercial print and graphics community. President Bill Meany emphasized the company's commitment 
to local service, stating that the Atlanta facility will offer next-day deliveries and a comprehensive product selection. Lindenmeyr Munroe will also introduce its state-of-the-art eCommerce platform in Atlanta. The 
new facility is set to begin operations in early September 2024.

Willamette Falls Paper Company Faces Potential Permanent Shutdown

Willamette Falls Paper Company will lay off 158 workers this week from its West Linn, OR, mill and may shut down permanently at the end of the month if it cannot find a buyer or investor. The mill will cease operations Friday, August 9th. Company President Brian Konen stated that while they hope for a temporary layoff and a potential buyer, the layoffs will become permanent if the company cannot raise capital or sell its assets. A final decision on the plant's future will be made by August 30. Willamette Falls’ West Linn facility produces approximately 152,000 tons per year of coated freesheet (CFS) paper, about 9% of North American CFS capacity

 

Demand and Operating Rate Forecasts (RISI)

DORF_RISI_August2024

 

U.S. Economy and Paper End-Use Indicators (IMF, RISI)

USEPEUI_August2024

 

N.A. Coated Paper Demand and Shipments   |   N.A. Coated Paper Operating Rates