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N.A. Coated Groundwood Demand Weak

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The demand for coated groundwood is weak and prices are falling, Wilde continues. Estimated prices on No. 5, 40-lb offset rolls fell $15/ton to $860 - $900/ton in January, he notes, adding that in December, prices fell ˜$30/ton. According to PPPC, December ship's were down 10.2% y/y (2011 -7.6% y/y). Mills operated at 89% capacity in December (2011 = 90%). Citing "demand headwinds" and rising inputs, Verso recently shutdown PM 2 at its Bucksport, Me., mill (90,000 tpy). Other producers have announced supply moves – UPM in Europe and Newpage in North America, according to Wilde.

 

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