CFS Markets Improving

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The tenor of the North American coated free sheet market is improving, according to Wilde. List prices in May were +$5/ton. Producers announced a $40/ton price increase, effective early May/June 1. Suzano recently announced a 6% price increase in LatAm markets effective June 1. Recent data suggest a pick-up in activity (preliminary April shipments +33.3% y/y, operating rate = 98%). Also, the coated sheet market will get a large boost as restrictions on Chinese and Indonesian imports take effect. Recently, the U.S. imposed anti-dumping duties on Chinese and Indonesian imports. For Chinese mills, this adds 31%-90% to the 4%-13% duties already in place, and Indonesian mills face an additional 11% on top of the previous 18%. With the market set to enter the seasonally strong period for commercial printers, the price hike has a lot going for it, Wilde points out.