Billerud Delays Planned Price Increase
The October price increase announced by Billerud has been delayed as market conditions are not supporting such a move. Billerud told customers that it would increase CFS paper prices in North America by 2%, effective with all new and existing orders with confirmed delivery dates of Oct. 1. No other paper suppliers announced October price increases in the North American market. Previously, Billerud announced it would temporarily lay off workers at its Escanaba mill during one week of planned maintenance and a consecutive week of market-related downtime.
USPS Files with Regulator for 6th Rate Hike in the Past 3 Years
On October 6, the U.S. Postal Service sent a new rate change proposal to the Postal Regulatory Commission. If the Commission approves the proposal, new rates will be implemented after the stroke of midnight on Sunday, January 21, 2024. The rate changes would impact all postal categories and products. Overall rates would increase by about 2%. However, core catalog products, such as Marketing Mail flats and Carrier Route flats, would be subject to an extra 2% surcharge. The First-Class stamp would rise from 66 cents to 68 cents.
Printing and Writing Paper Destocking Continues
The North American printing and writing paper market remained soft in September with demand still below pre-pandemic levels. While most paper merchants and some printers have worked through most of their inventories and are ordering paper again, some are still overstocked. Suppliers are taking downtime to keep inventory in check and avoid price reductions. Overall, the market is expected to gradually improve in the coming months, but demand is likely to be lower than in previous years.
CJK Group Acquires Worzalla
CJK Group has acquired book printing company Worzalla, of Stevens Point, Wisconsin, which will be renamed Sheridan Worzalla. Worzalla specializes in the children’s and tradebook markets. Jim Fetherston, president and CEO of Worzalla, noted, “With CJK Group’s ongoing support, Sheridan Worzalla will be well positioned to continue to grow. In the rapidly consolidating domestic book manufacturing world, becoming a key part of a family-held market leader is a terrific fit for the future of our company and all employees. Headquartered in Brainerd, Minnesota, CJK Group is an international portfolio of companies with printing, publishing, technology, and information solutions.
Demand and Operating Rate Forecasts (RISI)
U.S. Economy and Paper End-Use Indicators
N.A. Coated Paper Demand & Shipments
N.A. P&W Paper Producer Inventories
