Mixed Results with Coated Groundwood Hikes
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April estimated prices on U.S. No. 5, 40-lb offset rolls rose $10/ton to $865 - $895/ton, +17.3% y/y (announced = $40/ton), according to Wilde. Reports suggest that implementation is "mixed," with the price increase going through for new buyers and non-contract customers, he says. Generally, the price hike on heavier weight grades has been more successful, Wilde adds. Demand is not as strong: Preliminary March shipments were up 25.4% m/m (mostly due to severe winter weather in February), but flat on a y/y basis. The key driver is rising input costs and capacity closures. The idling of 25% of Japan's LWC capacity due to the March 11 earthquake could further tighten the markets, he notes.
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