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| FORECAST (000 tons) |
| U.S.1 |
1998e |
1997p |
1996r |
| Production |
2,181 |
2,070 |
2,028 |
| Capacity |
2,292 |
2,288 |
2,306 |
| Utilization rate, % |
91.7 |
91,8 |
86.8 |
| Imports |
3,051 |
2,431 |
1,972 |
| Exports |
209 |
214 |
223 |
| Apparent U.S. consumption |
5,023 |
4,287 |
3,777 |
| lb/capita |
37.2 |
32 |
28.4 |
| 000 tons/billion $ real GDP (1992) |
0.67 |
0.59 |
0.54 |
| Canada2 |
|
|
|
| Production (shipments) |
3,067 |
2,540 |
2,552 |
| Capacity |
3,160 |
2,993 |
3,079 |
| Exports |
2,503 |
2,486 |
2,305 |
| Imports |
N.A. |
55 |
58 |
| Utilization rate % |
85.8 |
84.8 |
82.8 |
| 1. AF&PA. 2. CPPA. e=Pulp & Paper estimate; p=preliminary; r=revised. |
| TOP N. AMERICAN PRODUCERS |
| Company* |
Annual capacity (000 metric tons) |
Market share (%) |
| 1.Abitibi-Consolidated |
1,549 |
28.4 |
| 2. Bowater |
402 |
7.3 |
| 3. Stora North America |
386 |
7 |
| 4. Alliance |
375 |
6.8 |
| 5. Pacifica Papers |
281 |
5.1 |
| 6. Consolidated (LSPI) |
243 |
4.4 |
| 7. Champion |
243 |
4.4 |
| 8. Daishowa (N. America) |
243 |
4.4 |
| 9. St. Mary's |
226 |
4.1 |
| 10. Madison Paper |
220 |
4 |
Market share of top five companies: 53% Market share of top 10 companies: 74% North American capacity: 5,452,000 tons. U.S.: 2,292,000 tons; Canada: 3,160,000 tons.
* All tons are short tons; capacity based on 1998 estimates. Source: Pulp & Paper Week, Company Profiles, company data. |
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Grade structure. Uncoated groundwood papers (also known as groundwood specialties) are higher-value grades than newsprint, but less costly than free-sheet. By definition, uncoated groundwood grades contain more than 10% mechanical pulp and varying proportions of chemical pulp and fillers. They are used in a variety of printed products, such as telephone books, catalogs, advertising inserts, Sunday newspaper magazines, direct mail flyers, business forms, and paperback books.
Typically, most uncoated groundwood papers are a step up from newsprint in both quality and price, with higher brightness levels and smoother surfaces. Several of the grades, such as machine-finished (MF) offset and rotonews, are marketed as cost-effective, slightly higher-quality substitutes for newsprint. In the case of supercalendered papers, they are a lower-cost alternative to lightweight coated (LWC) groundwood paper. Supercalendering and soft calendering add a glossy surface to make a paper (grades SC-A+, SC-A, SC-B, SC-C, and soft-nip) that competes with LWC for some business. Brightness levels range from 62-72 Elrepho, compared to 56-62 for standard newsprint and 68-84 for LWC. Basis weights range from 20-45 lb. Mills with newsprint machines often make some uncoated groundwood specialties, and some newsprint machines have been converted to sole production of the paper.
Production/capacity. The startup of a new machine at Stora North America's mill in Port Hawkesbury, N.S., was an important event for both the uncoated and coated groundwood markets. With a capacity of 385,000 tpy, the machine is the biggest SC maker in the world. The company says it has the capability to produce SC-A+ which is comparable to LWC. In another major announcement, Alliance Forest Products Inc. said it will build a new 152,000 mtpy machine to make soft-nip at its Donnacona,Que., mill. The net capacity gain will be 62,000 mtpy when two smaller machines are shut.
Through May, U.S. groundwood paper shipments were running 5.2% ahead of the same period last year. Canadian shipments were up 13.7%. In 1997, the U.S. shipments totaled 2.06 million tons and Canadian shipments 2.5 million metric tons. U.S. mill inventories stood at 66,400 tons at the end of May, down 16.4% from the same period a year ago, but up from 482,000 tons at the end of 1997.
Markets/outlook. After surging last fall, demand for uncoated groundwood weakened over the winter as January and February are usually tepid months for orders. But the market rebounded enough by spring for producers to start talking about price increases, thanks to mills having kept their inventories at a low level. In April, most SC mills reported full order books and price increase announcements started funneling in in June ahead of the traditionally busy summer season for holiday catalog buying. Aiding the SC increase was some lost supply due to startups and machine improvements. As of the end of July, groundwood specialties were the only bright spot in the printing/writing paper business, with a July 1 increase on SC papers taking effect and other increases announced for the summer months for high-brights, soft-nips and some spot directory. The high-bright increase was being helped along by constricted supply due to a strike at Abitibi-Consolidated Inc. newsprint and groundwood mills.
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