Hardwood pulp producers around the world are facing higher wood fiber costs and lower pulp prices as the global demand weakened over the past four months.
Wood Resource Quarterly reported that the price index reached a 24-year high in the third quarter of the year at the same time as hardwood pulp prices actually dropped by 26% from June through to October.
With the overall demand for market pulp weakening over the past four months figures for shipments of hardwood pulp show a fall from 1.76 million tons in June to 1.41 million tons during July. August shipments improved slightly to 1.57 million tons, although producers are now factoring in lower demand and reduced pulp production for the next few months.
Hardwood pulp prices are down a massive 26% from June to the early November. Concurrently, wood costs have increased, which has squeezed the profit margins for many producers of hardwood pulp.
The Hardwood Wood Fiber Price Index rose for the fifth quarter in a row, reaching US$117.91/*odmt, an increase of 14% percent since last summer and an all-time high.
The Softwood Wood Fiber Price Index interestingly only dropped by less than one percent to $108.90/odmt, the first decline since the second quarter of 2010. In addition to exchange rate adjustments, wood prices also fell in the local currencies particularly in France, Spain and Russia.
Industry sources say that the Softwood Wood Fiber Price Index has been higher than the Hardwood fiber index for 21 of the last 24 years and it is only over the past three years that HFPI has been sold at a premium.
Based on these statistics and In light of these recent price and cost developments, it seems producers may decide to return to using more softwood pulp in their product mix, both for market pulp and in their integrated pulp and paper facilities.
* Oven dry metric tons
Copyright © 2011, DPNLIVE – All Rights Reserved
Bob Tallent
The Synergy Group
17th November 2011
Below are some of the main International headlines which made the news during the period 12th – 17th November 2011. Noticable amongst them was the ECB and the Euro zone debt crisis, the UK’s decision to sell Northern Rock to Virgin Money at a loss to the British taxpayer, and intriguingly, Warren Buffett’s decision to buy shares in IBM.
- Spanish and Italian debt was the focus of the European Central Bank this week when they intervened in the bond markets. However, the Germans insisted that the bank didn’t see itself as a bank of last resort. The markets were nervous by the uncertainty about the willingness of the ECB to stand behind Euro-zone governments. It was worrying to see the spread of Austrian, French and Dutch bond yields over German Bunds also shot up, though to levels still well below those of Italy and Spain.
- The European Commission put forward proposals for the credit rating agencies to be rotated by companies. The Agencies weren’t happy with this. They also want to give regulators the power to approve the methodology behind the agencies' analyses. But the commission didn’t recommend an outright ban on providing credit ratings for countries seeking a bail-out.
- Josef Ackermann, who was offered the position of Chairman of Deutsche Bank, stunned colleagues by deciding that he would not take up this position. Mr Ackermann is stepping down as the German bank's chief executive. Shareholders scuppered a succession plan that envisaged Mr Ackermann staying on at the bank as chairman, with Anshu Jain and Jürgen Fitschen sharing the job of chief executive. Deutsche Bank now wants Paul Achleitner, Allianz's chief financial officer, as chairman.
- UBS unveiled its new strategy, which focuses on the company’s core wealth-management business and curtails its investment-banking activities. The Swiss bank also appointed Sergio Ermotti as chief executive (after some speculation that Mr Ackermann would get the job, see above). When Oswald Grübel resigned over the lack of supervision of an alleged rogue trader, Mr Ermotti took the position on an interim basis.
- The British Treasury sold Northern Rock (NR) to Virgin Money for £747m. NR is the "good" part of a failed British bank that was taken into public ownership.
- Mainly due to rising energy prices slowing a bit, the annual inflation rate in America fell in October, for the first time in four months, to 3.5%.
- Britain's annual inflation rate dropped to 5%.
- An airline based in Dubai, Emirates, announced that it would buy fifty Boeing 777 jets with a listed dollar value of $18 billion, and an option to buy another twenty. This is Boeing’s biggest single order for commercial aircraft to date.
- The UK’s unemployment rate has risen to its highest level since 1996 and now stands at 8.3%.The Bank of England has reported that the prospects for the British economy have "worsened" and it indicated that it would undertake more quantitative-easing measures over the coming months.
- EMI has been split in two in order to facilitate the sale of the Company. Universal Music will give $1.9 billion for EMI's recorded-music division, and a consortium which includes Sony Music and the estate of Michael Jackson will buy EMI's music-publishing unit for $2.2 billion.
- The “Cloud” is being used by Google when it launched its own online music store, in an ambitious attempt to challenge Apple's iTunes. Other players in the market are also using the same method.
- Warren Buffett disclosed that from March last, Berkshire Hathaway, his investment company, has been buying shares in IBM. The value of the stake amounts to around 5.5% in the IT Company. Mr Buffet has been generally cool about the IT industry in the past and it is the first time that he has taken such a big bet on a stock in the technological industry. He said he made an exception for IBM as he is impressed with its long-term strategy and because IBM treats its share price "with reverence".
Accreditation represents accelerated productivity, higher-quality output and reduced production costs for users
SAi’s Flexi software is fully certified for Color-Logic’s Process Metallic Color System™
SA International (SAi) is a leading provider of software solutions for the professional sign making industry. It's wide-format digital printing and CAD/CAM for CNC machining industries has announced that its industry-leading Flexi software has been fully certified by leading color communication systems manufacturer, Color-Logic, for use with its Process Metallic Color System™ for the wide format and sign markets.
Label community salutes industry’s finest
Bruce Bell Lifetime Achievement award
The winners of the 2016 Label Industry Global Awards were announced on 13 September at a gala ceremony which took place after the opening day of Labelexpo Americas. Held at the Rosemont Theatre, Chicago, the awards recognize the notable achievements and commercial creativity of label industry manufacturers, suppliers and converters over the last twelve months.
Kornit Digital will focus on latest technology enabling creative and profitable business models for Kornit users
Kornit Digital Vulcan
Kornit Digital is a worldwide market leader in digital textile printing technology. On 23 August it announced that it will take part in SGIA Expo 2016. It is North America’s leading tradeshow for imaging and printing professionals and will be held at Las Vegas Convention Center September 14-16.
Goss International highlights the benefits of web offset for packaging during drupa panel Brazil
Vitor Dragone, General Manager of Goss Brazil, presented details of Goss’ comprehensive packaging portfolio
Goss International Brazil announced on 2nd August that they sponsored and presented one of the most important events in the packaging sector, the drupa panel. Attendees were provided with details of the latest Goss technology innovations, the current packaging market trends and how web offset printing is meeting and exceeding these market demands.
HERA INSTALLS FIRST HIGHCON EUCLID IN LATIN AMERICA
Hera Product
Highcon announced on 26 July that the first installation of a Highcon Euclid II+ digital cutting and creasing machine in Latin America at Hera Printing Corporation.
Ron Kukla appointed to lead sales force in the region.
Ron Kukla, Sales Director
Israeli headquartered Highcon has appointed Ron Kukla to the position of Sales Director for the Americas. He will be responsible for both leading Highcon’s North and South American sales team and promoting the adoption of Highcon’s digital cutting and creasing technology to customers and potential new clients.
This is Ricoh leading by example where it Empowers Global Customers to Bring New Value to Their Markets
Ricoh announced on 8 January 2016 that it has reached an agreement to buy AnaJet, the leader in direct to garment (DTG) printing. AnaJet is headquartered in Costa Mesa, California with a staff of 50, it will become a wholly owned subsidiary of Ricoh Printing Systems America, Inc. It will continue to operate under its current name and management team.