June 2021 Paper Market Update

Industry News

 

Paper Excellence to Acquire Domtar

Paper Excellence, a Canadian-based global manufacturer of pulp and printing, writing, specialty, and packaging papers, is acquiring Domtar, the largest integrated producer of uncoated free-sheet paper in North America. After the transaction closes in the second half of 2021, Paper Excellence intends to continue the operations of Domtar as a standalone business led by its current management team. Domtar’s network includes 13 pulp and paper mills and 10 manufacturing and converting facilities in the U.S.and Canada, which give it approximately 2.7 million tons of paper-making capacity and 1.5 million metric tons of market pulp capacity annually. Paper Excellence also owns Catalyst Paper, which it acquired in 2019.

USPS Files For Second 2021 Rate Hike

The USPS announced it has filed for a second rate increase for 2021, with rates to go up by 6.9% on average. Overall, Marketing Mail rates will increase just over 6.8%, but so-called "underwater" Marketing Mail flats and Carrier Route will both go up by 8.819% and 8.866%, respectively. Pending review by the Postal Regulatory Commission (PRC), the new rates will take effect on August 29th. The USPS chose to take the maximum amount allowed following a November 2020 order from the PRC allowing the USPS to bust the consumer price index cap limit. (Source: ACMA)

Domtar, IP, and PCA Announces UFS Price Increases for June-July

Prices for uncoated freesheet (UFS) paper remained unchanged in May, after increasing in March and April, but several mills – including the top-3 largest producers by capacity, Domtar, International Paper (IP), and Packaging Corporation of America (PCA) – announced a new price increase for June-July in North America, ranging from $60-80 per ton. Resolute, Norpac, Willamefe Falls, Phoenix Paper, ND Paper, Finch, Rolland, American Eagle, Evergreen, and Pixelle separately announced $60/ton UFS price increases starting in June.

Demand and Operating Rate Forecasts (RISI)

U.S. Economy and Paper End-Use Indicators

N.A. Coated Paper Operating Rates

N.A. Apparent Consumption

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