Monday, November 26, 2012

PPPC Reports Oct. Coated and SC Paper Ships

The Pulp & Paper Products Council reported October North American coated mechanical shipments fell -6.3% as compared to the same month last year. Demand increased +1.5%, imports were up +38.1% and the operating rate was 99%.
Coated woodfree shipments rose +1.7%, demand increased +1.8% and imports were down -1.8%. The operating rate was 102%.
SC-A/SC-A+ shipments declined -10.4%, demand decreased -21.2% and imports fell -31.3%. The operating rate for all Supercalendered paper was 93%.

Resolute Building Wood Pellet Plant

Resolute to build wood pellet plant
Resolute Forest Products has announced plans to build an industrial wood pellet plant that will convert a currently underutilized residual material into a reliable source of renewable energy. Construction of the plant is expected to begin shortly and is scheduled for completion in 2014. The Company has signed a ten-year agreement to supply Ontario Power Generation with 45,000 metric tons of pellets annually.
The plant will be built adjacent to the company's sawmill in Thunder Bay, Ontario.

NA Oct. Newsprint Demand Up

North American newsprint demand remained in positive territory overall in October with a gain of 1.7% over October 2011, according to data published today by the Pulp and Paper Products Council.
The gain was supported by demand from non-newspaper end use which was 17.4% higher than in October 2011. However the October increase for the segment was seven percentage points weaker than the year-to-date average. Demand by newspapers was 2.6% lower than a year ago.

Domtar Buys Ottawa/Gatineau Hydro Assets

Domtar announces closing of sale of Ottawa/Gatineau hydro assets: Domtar Corporation (NYSE: UFS) (TSX: UFS) confirmed the November 20 closing of its previously announced Definitive Purchase and Sale Agreement ("the agreement") signed by its Canadian subsidiary, Domtar Inc., for the sale of its hydro assets in Ottawa, Ontario and Gatineau, Québec. The purchaser is Chaudière Hydro L.P. ("Chaudière Hydro"), the newly-created affiliate of Energy Ottawa Inc.

China's Oct. RCP Imports Fall, Pulp Up

China's total recovered paper (RCP) imports dropped 23.5% to nearly 2.076 million tonnes in October, down from some 2.714 million tonnes in September, according to data from China Customs (see table below).
October's figure was still 8.6% higher than the 1.911 million tonnes recorded in the same month of 2011, though. 
China's total pulp imports grew 3.8% in October compared to the previous month, to nearly 1.379 million tonnes, according to data from China Customs (see table below).
Chinese buyers snapped up tonnage in August and September for restocking, following price cuts by sellers. Most of these volumes arrived at Chinese ports in September and October, which was reflected in the customs data.

Catalyst Crofton & Elk Falls Face Local Issues

Permit changes to prevent a 2013 salmon kill, while supplying Crofton mill’s water needs, is under discussion by Catalyst’s paper’s brass.
Mill manager Rob Belanger said he and his bosses are mulling a recent forest ministry recommendation that Catalyst seek an amendment to its Cowichan River water licence.
http://www.campbellrivermirror.com/news/180538341.html
Development of the abandoned Catalyst pulp mill property is “frozen” and the city will not have the ability to issue re-development permits any time soon, an Environment Ministry official has told the Mirror.
Senior contaminated sites officer Vincent Hanemayer says two parallel review processes are underway and until the City of Campbell River receives the appropriate sign-off from the environment ministry, the municipality’s ability to “issue demolition, subdivision rezoning, soil removal, development or development variance permits is still frozen.”

AF&PA Oct. Containerboard Report

American Forest & Paper Association Releases October 2012 Containerboard Statistics Report: The American Forest & Paper Association released its October 2012 U. S. Containerboard Statistics Report.
Containerboard production rose 2.6 percent over September 2012 and 0.5 percent compared to the same month last year. The month-over-month average daily production decreased 0.7 percent. The containerboard operating rate for October 2012 gained 0.1 points over September 2012, increasing from 96 percent to 96.1 percent.
(AF&PA American Forest and Paper Association)

AF&PA Oct. Paperboard Report

AF&PA Releases October 2012 Paperboard Statistics Report: WASHINGTON - The American Forest & Paper Association released its October 2012 U.S. Paperboard Statistics Report today. Total boxboard production increased by 2.6 percent compared to October 2011 and increased 0.5 percent from last month.  Unbleached Kraft Boxboard production decreased over the same month last year and decreased compared to last month.  Total Solid Bleached Boxboard & Liner production increased compared to October 2011 and increased compared to last month.&nbsp

Q3 Global Fiber Market Report

The Global Forest Industry in the 3Q/2012: Excerpts from the Wood Resource Quarterly
Global Timber Markets
Global Pulpwood Prices
• Wood fiber prices fell in the local currencies in most of the regions covered by the WRQ in the 3Q. However, because the US dollar weakened against most currencies, wood prices in US dollar terms did not decline as much this quarter.
• The Softwood Wood Fiber Price Index (SFPI), which is based in US dollars,
was down another 0.5 percent from the 2Q/12 to US$100.05/odmt. It was the fifth consecutive quarterly decline and the index has now come down 8.7 percent since early 2010. The biggest price declines were seen in Northwest US, Germany and Russia.
• Hardwood fiber prices started to increase in some regions in the 3Q, which resulted in the first increase of the Hardwood Wood Fiber Price Index (HFPI) in over a year. The Index increased by $1.56/odmt from the 2Q/12 price to $106.44/odmt in the 3Q/12. Hardwood fiber prices increased the most in Russia, Eastern Canada and Brazil.

Finland’s Forest Sector’s Outlook Hopeful

Finland’s forest sector’s outlook for 2013 slightly better
Finnish forest researchers are cautiously optimistic that after the slump year 2012, 2013 can be a more positive one for both wood processing industry and forestry.
Paper production will drop by nine percent from 2011 to 2012. Demand for sawn timber continues to decrease this year. Rroundwood prices for softwood will decrease by 5– 6 percent compared to 2011. The overall profitability of the wood processing industry as well as private forestry will decrease this year, predicts the Finnish Forest Research Institute Metla in its Economic Outlook report published recently.

Global Sawlog Price Continues to Fall

GSPI fell for the fifth consecutive year
According to a new report from Wood Resource Quarterly, global demand for lumber declined in many regions during the summer and fall, log prices continued to trend downward. The Global Sawlog Price Index (GSPI) fell for the fifth consecutive quarter to $81.94/m3. The Index was down only 1.1 percent from the 2Q/12, which was the smallest quarter-over-quarter decline since world prices started to fall in early 2011. Sawlog prices are now back down to levels where they were two years ago.

66% of Consumers Use Catalogs

In today’s digital-driven shopping world, at least one tried-and-true retail shopping channel, the print catalog, retains a vital role for consumer shoppers and the companies that continue to mail catalogs. And as we enter the Holiday 2012 shopping season, consumers are eagerly perusing their catalogs as an integral part of their gift-buying process. According to a new survey, 66% of consumers say they peruse the catalogs they receive; in comparison, according to other studies, consumers look at just 42% of all advertising mail they receive.

MPA Calls on Congress to Act on Postal Reform

The stakes are dire. The USPS reported a $15.9 billion net loss for the fiscal year that wrapped up Sept. 30, over two-thirds of which came from required payments to fund future retiree health benefits. For over a year now, Congress has put off passing reform. With the "fiscal cliff" negotiations now a priority, it may not happen before the new Congress is installed next year. Folks like D. Eadward Tree at the blog Dead Tree Edition are understandably cynical about the whole process. 
The USPS has long been caught in the middle between its desire to implement private-sector style reform and its status as a government agency expected to serve all while funding its own operations.

AAM Revises Circulation Reporting

The board of the Alliance for Audited Media (formerly the Audit Bureau of Circulations) has agreed to create an allowance for U.S. magazine newsstand sales that are lost when not properly scanned or accounted for by retail outlets. The board will determine the final allowance percentage at its March meeting, following further industry discussion. If given final approval, the new U.S. rules would take effect with 2013 first-half magazine publisher's statements.
The AAM board also agreed to require U.S. magazines with circulations over 250,000 to report more frequent per-issue data via AAM's Rapid Report tool, beginning with July 2013 issues. Participation in Rapid Report has been optional since its inception in 2006. The board also agreed to modify the U.S. rule for credit cancellations to allow these copies to be counted as "verified" circulation.

Fewer Catalogs Mailed, Still Link to Sales

Despite the flood around the holidays, annual catalog circulation by retailers has actually dipped substantially because of a postage increase, a weak economy and more shoppers making purchases online. Nearly a third fewer catalogs are mailed than were four years ago.
Steve Fuller, L.L. Bean's marketing chief, sees the trend accelerating but he doesn't see catalogs going away anytime soon. That's because catalogs and online sales are intertwined, with catalogs serving as a tool to get customers' attention and to motivate them to make purchases, often online.

McGraw-Hill Sells Education Business

McGraw-Hill Sells Education Business for $2.5 Billion:
McGraw-Hill has agreed to sell its education business to investment company Apollo Global Management for $2.5 billion. This leaves the company with its remaining McGraw-Hill Financial operation and after the close of the deal, which is expected later this year or early 2013, it will become the company's official name.

Harry & David Tries New Venue

America’s iconic gourmet gifting curator, is excited to announce the opening of 5 seasonal stores and 9 free standing gifting centers. New this year, the seasonal stores and gifting centers will be open throughout the holiday season in the following locations: California (Paseo Colorado Mall, Topanga Plaza, South Coast Plaza, The Oaks, Promenade In Temecula), Illinois (Westfield Fox Valley Mall, Yorktown Center), Massachusetts (North Shore Mall, Solomon Pond, Natick Mall), Maryland (Westfield Annapolis), Pennsylvania (Park City Center) and Virginia (Dulles Town Center, Tyson’s Corner).

What I’m Watching in 2013

What I’m Watching in 2013:
What will 2013 mean for the print & media industries? What changes can we expect to see regarding the use of print in corporate marketing strategies? That’s one of the things I’m most excited about, heading into the New Year – what about you? I’m not so concerned with new technologies and equipment. The bigger picture has always fascinated me.

WARC Changes Global Ad Forecast

WARC downgrades global advertising spend forecast:
The figures, contained in WARC's latest International Ad Forecast, represent cuts in the expected combined growth rate of printed, online, television, outdoor and radio advertising spend of 0.5% in 2012 and 1.5% in 2013.
Taking into account forecast inflation, the report predicts that global ad spend will rise by just 1.8% and 1.6% this year and next.

Americans Consume 11+ Hours of Media Daily

Americans Consume 11+ Hours of Media Daily: U.S. adults fit more than 11 hours of media content into the average day in 2012. In the past 4 years, time spent with mobile has increased 273% while time spent with print has decreased 31%.