January 10, 2024

Paper Market Update | December 2023

By Kodi Collective · 2 minute read

U.S. Postal Service Will Raise Postage Rates Effective January 21, 2024

The increase will affect all classes of mail, including letters, flats (catalogs), and parcels. The increase for letters is 1.37% and the increase for flats is 5-6%. Several promotions can be utilized to offset the increases, including:

Tactile, Sensory & Interactive: 5% USPS discount for Marketing Mail and First-Class Mail
Informed Delivery: 4% USPS discount for Marketing Mail and First-Class
Emerging and Advanced Technology: 3% or 4% USPS discount for Marketing Mail and First-Class Mail

Direct mailers and catalogers can also sign up for the 2024 USPS Mail Volume Incentive Program. This program offers a rebate on postage for mailers who increase their mailing volume compared to the previous year.

Negotiations on Possible Temporary Layoffs Begin at UPM in Finland

UPM Communication Papers, UPM Pulp, UPM Timber, and UPM Biofuels will begin change negotiations on possible temporary layoffs to prepare for possible temporary adjustment of production in the Finnish units should the uncertainty in the operating environment continue. The change negotiations on possible temporary layoffs concern all UPM pulp mills, sawmills and graphic paper mills in Finland. The change negotiations cover approximately 1,100 employees at UPM Communication Papers Finnish mills. The possible temporary layoffs could take place from March 1, 2024 until August 31, 2024 at UPM Communication Papers. Any temporary layoffs could be implemented in stages and could last a maximum of 90 days in total. Decisions on possible temporary layoffs will be made after the change negotiations have been concluded.

Paper Excellence Canada Extends Curtailment at its Crofton Mill

Paper Excellence Canada announced that the curtailment of paper operations at its Catalyst Crofton facility will be extended to the end of February 2024 due to challenging market conditions which have not recovered as anticipated. Paper Excellence Canada continues to work with its employees to mitigate the impact of the ongoing paper production curtailment. The mill’s pulp operations, which support approximately 400 union and salaried staff employees will continue production during the extended paper curtailment. Paper Excellence Canada will continue to supply customers with products typically made at Crofton from other mills within the Paper Excellence Group where possible.

Some Mills Raising Uncoated Freesheet Prices in Europe

The Navigator Company said it would raise UFS prices in Europe by 5-7% from December 1. Additionally, Burgo said in mid-November that it will seek hikes of at least 6-7% for deliveries from December; Lecta is planning 7-9% hikes from January and Sappi announced 7-10% price hikes beginning in January. Capacity wise, there has not been any big news in recent months apart from Sappi announcing in October that it will close its Stockstadt woodfree paper mill in Germany in Q1 2024. The site can produce 220,000 tonnes/yr of coated and uncoated woodfree paper, which is mainly sold into the European print market.