Market Update: Paper Prices

Over the last several weeks, paper mills have announced several actions that may have a significant impact on the paper market over the coming months. Because we value the relationship with have with our customers, we wanted to share this information with you. At this time, we do not know the exact impact (how much or how soon), but we promise to keep you updated with the latest information.

  • A total of over 1M tons in uncoated free sheet (UFS) capacity is coming out of the market over the next 3 – 6 months.
    • One major manufacturer has announced the closing of a mill in Alabama.This mill’s capacity is approx. 750K tons UFS.
      • The Alabama mill makes up about 25% of this mill’s US capacity, or about 9% of the North American market capacity.
      • This manufacturer has announced an up-to 7% price increase effective October 23, 2013.
      • A joint mill operation has announced the shut-down of a total of three machines equal to ANOTHER +200K tons in capacity.
  • Another manufacturer has announced a $40 to $60/ton price increase effective October 15.
  • A merger between several paper manufacturers is likely in Q4, 2013 or Q1, 2014.

Based on past trends and these new indicators, we are looking the tightening of available stock and, probably, an increase in price. As we said before, how much or how soon remains to be seen. We are examining all options to save money through multiple sources, while maintaining the high-quality paper you expect from Perry Office Plus.

Our business is making your workday smarter, easier, better. We strive to do that by staying abreast of industry trends – this allows us to make the very best recommendation for YOUR business needs. We are always here to talk.

About Perry Office Plus
We're Central Texas' largest independent office products & furniture dealer and have been locally owned and operated since our establishment in 1920. Visit our website to shop for all your office supplies and call any of our fantastic Customer Service Reps if you have any questions or need help with your office products.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: