Coated Paper Market Turns to Profits.(Market overview)

Graphic Arts Monthly, October, 2006 by Ducey, Mike

By Mike Ducey

Conditions for buyers of premium coated paper products are relatively good. Terrific overcapacity has widely broadened opportunities to purchase high-quality products at low prices.

This market should continue through 2007 and beyond, with possible upward blips during holiday buying, sports events and political elections. After that, the winds of change may blow behind new owners-oligarchs and private equity management that govern operations and restrain production and capacity expansion. One needs only to look at newsprint and lightweight coated (LWC) for a roadmap.

In less than a decade, newsprint, supercalendared (SC) and LWC paper consolidated into a few hands. Two in North America (Bowater, Abitibi) and NSI of...

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