Kruger Resumes Operations at Trois-Rivières Mill
On June 19th Kruger and Canadian union Unifor reached an agreement between the employees at the Kruger paper plant in Trois-Rivières, QC, and the company's management, putting an end to a strike that began on May 30th. The mill resumed operations on June 20th. Kruger produces 396,000 tonnes per year of recycled linerboard and 160,000 tonnes per year of newsprint at the Trois-Rivières mill. Unifor said in a release that the new four-year collective agreement “marks a major milestone for employees, with unprecedented wage increases and substantial improvements to benefits, vacation, pension and the introduction of an overtime bank for production employees.”
USPS Failing to Meet Financial Goals from DeJoy’s 10-Year Plan
The U.S. Postal Service (USPS) is falling short of the cost savings projected in its 10-year "Delivering for America" (DFA) plan, according to a new audit by the USPS inspector general. Despite higher-than-expected revenue, overall costs have risen sharply, resulting in significant losses: $950 million in fiscal 2022 and $6.5 billion in fiscal 2023. The USPS inspector general criticized Postmaster General Louis DeJoy’s team for not providing specific cost savings updates or detailing how expenses would be reduced. The audit urged USPS to improve transparency with Congress, mailers, unions, and the public. Meanwhile, the latest USPS rate increase is set to take effect July 14th, marking the second increase this year and the tenth since 2018.
European Woodfree Paper Prices Rise Amid Increasing Costs
Woodfree paper prices rose slightly in the second quarter of 2024 as producers attempted to offset rising input costs, particularly for pulp and transportation. The closure of Sappi's Stockstadt and Lanaken mills
reduced woodfree paper supply at the end of 2023, but paper consumption improved in early 2024, helping increase demand for coated woodfree (CWF) paper by 18% and uncoated woodfree (UWF) paper by 15% year-over-year in the first four months of 2024 (Euro-Graph). Various producers, including The Navigator Company, Suzano, and Burgo, announced price increases between 5-7% to combat higher production costs. With continued high pulp prices and low paper demand, further price increases are anticipated. Mill closures are also expected in the coated woodfree paper segment to improve market balance and could potentially lead to higher prices as well.
McKinley to Close Port Angeles Paper Mill, Nearly 200 Workers Affected
McKinley Paper plans to shut down operations at its Port Angeles, Washington mill, resulting in the layoff of 193 employees on August 25. The company notified employees via email earlier this week, citing an
"indefinite mass layoff" and fulfilling the requirements of the Worker Adjustment and Retraining Notification (WARN) Act, which mandates 60 days' notice for large-scale layoffs or closures. McKinley Paper, a subsidiary of Mexico-based Bio Pappel, operates three paper mills in the U.S., producing recycled containerboard and packaging grades. The future reopening of the Port Angeles facility remains uncertain.
Demand and Operating Rate Forecasts (RISI)
U.S. Economy and Paper End-Use Indicators (IMF, RISI)
N.A. Coated Paper Demand and Shipments | N.A. Coated Paper Operating Rates
