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U.S. Uncoated Free Sheet Markets Slip

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U.S. cut-size uncoated freesheet (UFS) estimated prices slipped $10/ton to $1,025 - $1,075/ton (20-lb repro bond) in September, according to Mark Wilde of Deutsche Bank. Offset prices were flat at $910 - $930/ton.

"The decline in cut-size prices is not surprising given very weak demand (August -9.1% y/y). We expect cut-size prices to come under further pressure this month (October). Overall UFS shipments in August were -5.6% y/y (YTD -3.4%). At the same time, the pending restart of Harbor Paper's 150,000 tpy paper machine will increase supply in a weak demand environment. To be sure, so far producers have done a good job of reducing supply in a secularly declining market," Wilde says.

 

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