McEntee Media Corporation

October scrap paper export numbers surprisingly strong

2012-01-13T09:01:00.000-08:00

By Ken McEntee

Recovered paper export statistics from the U.S. Department of Commerce fly in the face of reports of a weak export market in October. Traders in October cited declining exports as a partial cause of eroding prices, including a massive drop of $100 per ton for Sorted Office Paper (SOP) within a month and a milder drop in Old Corrugated (OCC) prices.

October trade data from the Commerce Department’s Census Bureau show a 30 percent increase exports of chemical deinking grades compared to September shipments, along with a flat month-to-month average price.

Overall, exports in October were up almost 4 percent, to 1.9 million tons, while the average price for all grades were up 2.6 percent, to an average of $165.68 per ton. For the first 10 months of the year, exports were up 13.4 percent, to 19.3 million tons, while the average price was up 4 percent. Sales for the year were up 18 percent, to almost $3.2 billion.

October surprise

While the October free-fall was mainly attributed to domestic markets, a weak export market also was cited.

Traders in October attributed the whopping drop in SOP prices mainly to Georgia Pacific, which first announced at mid-month that it was dropping its SOP and Coated Book Stock (CBS) prices to $150 a ton, representing a drop of about $100 per ton within a four-week period. Other mills followed. Canadian buyers like Kruger and Cascade were the only holdouts, reportedly holding their prices closer to $200 per ton until later in the month. Up to the GP announcement, other mills were already buying at levels $30 to $50 below their September prices.

Mill inventories were reportedly very high, but traders also noted that lackluster overseas demand was contributing to declining prices.

Traders also reported weakness in Chinese buying of OCC in October. Reportedly, after placing orders early in the month Ralison International, which buys for China’s Lee and Man Paper, reportedly has told suppliers not to ship any more tonnage. Meanwhile, America Chung Nam, which supplies China’s giant Nine Dragons Paper, was reportedly issuing purchase order with the price “to be determined.”

Commerce statistics show a 2 percent decline in OCC exports to China during October, along with a 4 percent increase in the average price of OCC shipped to China. Judging by traders’ reports, November trade data should indicate a much larger reduction in exports to China, along with a heavy drop in price.

Traders reported that OCC was moving to China from Los Angeles for about $245 per short ton, delivered to major Chinese ports. After a weeklong Chinese holiday at the beginning of October, the price was reported at about $220 per ton including shipping.

According to what appear to be undervalued prices reported by the Commerce Department, OCC exports to China averaged $130.81 per ton in September and $136.07 per ton in October. Commerce trade data indicates FAS value, including the value of recovered paper to the dock and transportation to the dock, but not including costs of loading and handling at the port, nor ocean freight.

October exports

According to Commerce Department data, all major grade categories of recovered paper improved from September to October except old newspapers (ONP). Meanwhile, prices were up for all grades except mixed paper, which dropped 2.6 percent, and chemical deinking grades, which remained just a quarter dollar below September levels.

* Despite chaos in the U.S. market, commerce reported a 30 percent increase in exports of chemical deinking grades, from 41,000 tons in September to 54,000 tons in October. The average price if deinking grades was at an average of $254.25 per ton in October. A 42 percent, 4,300-ton drop in deinking grade exports to China was more than offset by a 136 percent gain in shipments to India, from 6,100 tons in September to 15,000 tons in October. Exports to Canada were up 56 percent, from 6,000 tons in September to 9,300 tons in October. Exports to Mexico were relatively flat, falling 1.4 percent in October, to 3,800 tons. Among moderately-sized markets ranging between 2,300 and 3,300 tons, exports to the Netherlands were up 109 percent; El Salvador up 116 percent; South Korea up 68 percent, Italy up 31 percent, and Japan up 37 percent.

* Along with the 30 percent increase in deinking grade exports, October shipments of pulp substitutes were up 2.2 percent, with a 1.2 percent increase in price, to an average of $232.92 per ton. Exports to Mexico tanked, dropping 20 percent, from 44,200 tons in September to 35,400 tons in October. However, that 8,900-ton drop was offset by an 8,900-ton improvement in shipments to China, from 85,300 tons in September to 94,200 tons in October. Exports to El Salvador were up 78 percent, from 2,800 tons in September to 5,000 tons in October.

* OCC exports in October were up 1.2 percent, with a 5 percent improvement in price, to an average of $155.09 per ton. Exports to China were down 1.7 percent, from 696,000 tons in September to 684,000 tons in October, a difference of 12,000 tons. However, that loss was offset by increased exports to India, Indonesia and Vietnam. Exports to India were up 10 percent, or 5,000 tons, to 56,000 tons. Exports to Indonesia were up 79 percent, or 3,400 tons, to 7,800 tons. Shipments to Vietnam were up 97 percent, from 3,100 tons in September to 6,100 tons in October.

* Following deinking grades, mixed paper exports showed the greatest improvement in October, at 13 percent above the September number. Mixed paper prices, however, were down 2.6 percent, to an average of $158.80 per ton. Shipments boomed in October to China, India and South Korea. Exports to China were up 10 percent, or 20,000 tons, to 218,000 tons. Exports to India were up 52 percent, or 12,500 tons, to 37,000 tons. Exports to South Korea were up 39 percent, or 11,500 tons, to 41,000 tons. On the downside, exports to Indonesia were down 41 percent, or 7,700 tons, to 11,200 tons.

* Exports of groundwood, overall, were down less than 1 percent in October. While ONP exports were down 6.4 percent, exports of other groundwood grades were up 4.2 percent. ONP prices were up 3.8 percent, to an average of $163.45 per ton, while prices of other groundwood were up 1.8 percent, to an average of $151.86 per ton.

* ONP exports to China, the dominant market for the grade, were up less than 1 percent, to 120,000 tons. Shipments to Mexico strengthened in October, improving by 28 percent, or 3,400 tons, to 15,000 tons. However, the grade was hurt by a 23 percent, 7,900-ton decline in exports to Canada.

* China’s imports of other groundwood grades were up 7 percent, or 14,000 tons, to 216,000 tons. After China, the next largest market was South Korea, at 14,600 tons, a 12 percent decline compared to September. Exports to Canada were down 26 percent, or 2,400 tons, to 6,900 tons.

* Improved shipments to China and India were responsible for the overall improvement in October exports. Exports of all grades to China were up 2 percent, or 28,000 tons, to 1.3 million tons. Exports to India were up 24 percent, or 24,000 tons, to 125,000 tons, making India the second largest market for the month. Canada showed the largest September-to-October reduction in tonnage, at 7,600 tons, an 8 percent decline to a total of 88,000 tons.

Year through October

At almost 19.3 million tons shipped, the annual record of 20,975,455 tons shipped in 2009 may have been surpassed during November. The average FAS price of $162.63 per ton for all grades will most likely top last year’s record of $157.99 per ton. Through October, exports of all grades were up significantly except for mixed paper and ONP. Meanwhile, prices were better for all grades except OCC and groundwood other than ONP.

* Led by China, OCC exports were up 34 percent in 2011 relative to the same time in 2010. Shipments to China were up 54 percent, or 2.3 million tons, to 6.7 million tons for the year, representing 78 percent of all OCC shipped, and equating to 29,000 shipping containers per month. Through October 2010, China accounted for 67 percent of all OCC exports. Subtracting tonnage to China, OCC exports to all other markets through October would be down 9 percent.

The next largest market after China was India, at 538,000 tons, representing a 1 percent increase compared to the same time in 2010. Following China, the strongest growth has been in exports to Vietnam, which were up 69 percent, or 24,000 tons, to a total of 60,000 tons. On the downside, OCC exports to Ecuador were down 76 percent, or 71,000 tons, from 93,000 tons through October 2010 to 22,000 tons through October 2011. Exports to Mexico were down 12 percent, or 53,000 tons, to 400,000 tons, while shipments to Indonesia were down 50 percent, to 46,000 tons. Shipments to Argentina and Chile were down about 18,000 tons each. OCC accounted for 44.6 percent of all scrap paper exports, up from 37.9 percent a year earlier.

* Mixed paper exports through October were down 10 percent, while the average price jumped 14 percent, to $159.11 per ton. The drop was due to a 16 percent, 384,000-ton reduction on mixed paper shipments to China, from 2.6 million tons through October 2010 to 2.1 million tons in 2011, as Chinese mills tended to buy more OCC instead of attempting to sort contaminated residential mixed paper. Exports to Italy also were down heavily for the year – a drop of 62 percent, from 91,000 tons through October 2010 to 34,000 tons. Exports to South Korea, the second largest market for mixed paper, were down 6 percent, or 31,000 tons, to 501,000 tons. Shipments to Mexico were up 18 percent, or 27,000 tons, for a total of 176,000 tons, while exports to Thailand were up 36 percent, or 26,000 tons, for a total of 97,000 tons. Mixed paper accounted for 19.6 percent of all exports, down from 24.6 percent a year earlier.

* ONP exports were down 13 percent through October, with a 10 percent increase in price, to an average of $159.43 per ton. ONP exports to China, the largest market for the grade, were up 11 percent, to almost 1.2 million tons. But that 114,000-ton gain was a fraction of the reduced volume shipped to Mexico, Canada and Indonesia. ONP exports to Mexico were down 63 percent, or 351,000 tons, from 555,000 tons through October 2011 to 204,000 tons through October 2011. Exports to Canada were down 32 percent, or 119,000 tons, to 251,000 tons, while shipments to Indonesia were down 73 percent, or 92,000 tons, to 34,000 tons. ONP accounted for 10 percent of all scrap paper shipped, down from 13.1 percent a year earlier.

* Meanwhile, exports of groundwood other than ONP were up 30 percent, with a 1 percent drop in price, to an average of $144.99 per ton. Like for ONP, China is the dominant market for other groundwood, pulling in 83 percent of the total. Exports to China through October were up 45 percent, from 1.5 million tons through October 2010 to 2.1 million tons in 2011. Exports to South Korea were up 77 percent, or 76,000 tons, from 98,000 tons to 173,000 tons. Shipments to Mexico were down 57 percent, from 201,000 tons through October 2010 to 86,000 tons, while exports to Canada were down 27 percent, from 120,000 tons to 88,000 tons. Groundwood grades accounted for 13.3 percent of all exports, up from 11.7 percent a year earlier.

* Exports of chemical deinking grades through October were up 15 percent, while showing a 2 percent gain in price, to an average of $259.80 per ton. India, Italy and Japan mainly led the surge. Deinking grade exports to India were up 37 percent, or 27,000 tons, to 99,000 tons, making India the leading market for the grade. Shipments to Italy were up 126 percent, from 12,000 tons through October 2010 to 27,000 tons. Exports to Japan were up 86 percent, from 12,000 tons to 22,000 tons. Exports to Canada, the largest market for deinking grades at the same time a year earlier, were down 15 percent, or 15,000 tons, to 86,000 tons. Exports to Vietnam and the Philippines also were down significantly. Deinking grades accounted for 2.8 percent of all exports, the same as a year earlier.

* Exports of pulp substitutes were up 10 percent through October, while the average price was up 7.8 percent, to $216.12 per ton. Like for deinking grades, shipments to India were the main driver. Exports to India were up 145 percent, from 73,000 tons through October 2010 to 178,000 tons. Shipments to Italy were up from 10,500 tons to 92,000 tons. While deinking grade exports to Mexico were down through October, shipments of pulp subs south of the border were up 15 percent, or 51,000 tons, for a total of 400,000 tons. Improved volumes to those markets more than offset a 5.4 percent, 55,000-tons reduction in shipments of pulp subs to China, the largest market for the grade, at 958,000 tons. Exports to Canada were down 51 percent, from 49,000 tons to 24,000 tons. Pulp subs accounted for 9.6 percent of all scrap paper exports, down from 9.9 percent a year earlier.

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The Market: $150 SOP shocks traders

2011-10-18T09:13:00.000-07:00

Published by The Paper Stock Report - www.recycle.cc

By Ken McEntee

October 14, 2011

Sources on October 14 confirmed that Georgia Pacific is dropping its price of non-contract sorted office paper (SOP) and coated book stock (CBS) to $150 a ton effective on October 17 for its Eastern and Midwestern mills. Information was unclear whether that price also would include mills that draw from the west, such as the Muskogee, Okla. mill.

That price, which no other company has reportedly matched as of October 14, represents a decrease of more than $100 a ton for SOP in less than a month.

That free fall in prices trivialized a $30 to $50 per ton drop in SOP prices reportedly being paid in the Northeast U.S. and Eastern Canada – a decline that otherwise would have been described as astonishing.

“The Canadian mills are still paying in the $220 to $230 range,” said one broker.

Meanwhile, traders speculated on how much lower SOP prices might go as early as next week.

Prices at the Green Bay mill dropped from $250 in September to $200 on October 1 to $150 in mid-October..

“If Georgia Pacific is paying $150 for prime material, there is no telling where Fibrek and Kimberly Clark are going to be for the lower quality of fiber they buy,” said one. “I see this as a very strong statement about the state of the market. I anticipate a continuing erosion of pricing.”

The timing of Georgia Pacific’s announcement sets up an interesting pricing sheet in this issue of The Paper Stock Report. As of the close of business on October 14, sources said Canadian producers Cascades and Kruger had not yet responded to GP’s drop. But they anticipated a nationwide free fall in SOP prices during the week of October 17. As this issue stands, Eastern mill prices are still listed at $200 to $220, while other Southeast and Midwest prices reflect the $15o price being paid by GP mills.

Traders said domestic mills that use SOP and CBS are loaded with inventory, while export demand also is lackluster.

“CBS and SOP are very ugly,” said an East Coast broker before the word spread about GP’s price drop. “Coated book is at 200 or well under. South America has been out of the market for the last three months. SOP at the NY pier was $230 on October 1 and it is down to $210 today.”

The drop in prices of sorted white ledger (SWL), so far, have not been as dramatic as SOP. One reason, sources said, is that there is not a lot of SWL available on the market.

“I had a hard time putting five loads together this week,” one broker reported.

At the same time, though, large Southern consumers like International Paper and Boise reportedly were turning the grade away.

Nevertheless, with a huge price difference between SOP and SWL, packers are expected to start sorting more ledgers out of their office paper.

There may be a small window of time for that strategy to work, but in a sort time you can expect ledger prices to drop in line with the other white grades, traders said. Along with drops in deinking grades, pulp substitutes also continued to weaken this month in line with wood pulp prices.

According to a broker in the Northwest, Waste Management and GP Harmon Recycling, which have indexed contracts with large document destruction companies, stand to take huge hits on SOP.

“They are paying $270 a ton for paper and selling into Mexico for $210,” the broker said.

Before GP’s announcement, traders noted a “chaotic” market, but many described is as a large market correction and no reason to panic. Afterward, all bets were off.

“In the long term, we’re still in a fiber-short world,” said one broker. “Demand will continue to outstrip supply. My suppliers are in shock right now, but I think were going to find a balance in the next few weeks. Last time I checked people were still using toilet paper.”

Another broker questioned low prices would actually go.

“Mills understand that they need a supply network,” he said. “It is not good to shock the market.”

OCC

With SOP making the biggest news, the fall of old corrugated has almost gone unnoticed.

“The worm has turned on OCC,” said an east Coast broker. “I’m not sure why. All of my suppliers are busier with OCC than they have been in a while. Although none of the mills seem to be in the market to buy extra tonnage, the market is not horrifyingly out of balance. I just visited 10 to 15 suppliers and nobody was backed up with OCC.”

Regardless, domestic and Chinese mills have stopped buying and some traders were bracing for a price tumble.

According to one source, International Paper’s Cedar Rapids mill in Iowa has told its suppliers to sell its tonnage off elsewhere through the end of November. If you have to ship OCC to the mill in November, you’ll get $100 a ton, the source said.

On the export market, Ralison International, which buys for China’s Lee and Man Paper, reportedly has told suppliers not to ship any more tonnage this month.

According to one broker, American Chung Nam, which supplies China’s giant Nine Dragons Paper, is issuing purchase order with the price “to be determined.”

“You can ship, but the containers will be on the water before you know what you’re getting paid,” he said.

An East Coast exporter described the OCC market as “unglued.”

Traders said some of the market weakness predated China’s annual National Day holiday that starts on October 1. But there was some panic when buyers returned to the office after a week off.

“It’s not something that suppliers shouldn’t anticipate,” said one broker. “But there is anxiety when you’re trying to call your customers and they are not answering the phone. Then when the buyer gets back to the office he is bombarded with 15 people panicking to reach him on the phone. I don’t blame the buyers for wanting to step back and take a breath.”

Before the holiday week, U.S. OCC was reportedly moving to China from Los Angeles for $271 per metric tonne, delivered to major Chinese ports. After the holiday prices were around $242. Exporters at mid month were paying suppliers about $210 per ton FAS in Los Angeles and around $190 in Seattle, traders reported.

“The Chinese buyers aren’t really aren’t saying very much right now,” said one broker. “And some of them are not placing orders or releasing prices.”

According to an East Coast broker, “America Chung Nam is staying out of the market as an attempt to bring prices down.”

Domestically, traders said, board mills are generally sticking to contracts and taking virtually nothing else.

“There is a lot of downtime in China and the price of OCC was too high for too long,” said a West Coast broker. “Now mills are waiting for prices to come down. The mills we’re selling to figure that if the CIF price is $240 today, if they wait a week it will be down to $215 maybe. The CIF price has fallen $35 a ton since the end of September.”

Traders noted the Chinese government’s tighter control of credit as another factor in reducing containerboard demand.

“How is a box shop going to buy from a linerboard mill when they can’t get the credit?” asked one exporter. “Inflation in China is a lot higher than the government is reporting. Normal people with college degrees can’t afford the basic necessities. Nine Dragons has a huge debt to equity ratio. That’s bad. After all that expansion the mills are running very slow.”

Import licensing also has been cited as a factor to watch over the next two months. Chinese mills need to apply for licenses to import recovered paper for 2012. Under current licenses, tonnage needs to arrive before December 20, one exporter said.

“There is no doubt the big players like Nine Dragons, Lee and Man and Asian Pulp and Paper are going to get their licenses,” he said. “But the government is really cracking down on the smaller guys.”

Some traders say that while OCC prices are dropping now, Chinese mills will want to be sure to get orders received by December 20.

That’s one reason why U.S. scrap paper exports generally see an upward bump in volume between October and December.

“We’re always very strong in the fourth quarter,” one export says. “Normally the Chinese buyers know that prices are down from the summer and they come in pretty strong.”

That’s what one brokerage is expecting.

“We’re betting that by November the OCC price is going to start back up due to increased export demand,” said an exporter there. “I am looking for bump up in the beginning of November, then some downward movement for the next several months.

Nine Dragons threw another fly into the ointment last month with the announcement that the start-up of six new paper machines has the delayed. Nine Dragons brought on substantial new capacity this year, bringing the company’s total capacity to 11.5 million tons per year. The six new machines, which were scheduled to start up this year, would have added about 2.4 million tons of new capacity.

Cascades invests in New York containerboard mill

2011-06-27T09:56:00.000-07:00

Cascades invests in New York containerboard mill
June 27, 2011
Cascades Inc. said its Norampac division will invest in Greenpac Mill LLC, a corporation created with the Caisse de dépôt et placement du Québec, Jamestown Container and one other industry partner for the purpose of constructing and operating a state of the art containerboard mill to be located in New York state.

The Greenpac mill will be constructed for a total cost of $430 million on property located adjacent to an existing Norampac facility in Niagara Falls, N.Y. Greenpac will manufacture a light weight linerboard, made with 100 percent recycled fibers, on a single machine having a width of 328 inches, with an annual production capacity of 540,000 short tons. This machine will be one of the largest of its kind in North America.

Fiber supply will be carried out by Cascades and its recovery operations. Sources of old corrugated containers are numerous and significant in the region where the mill will be built, which will impact favorably Greenpac's raw material procurement, the company said. With regards to sales, customers have already been secured for more than 80 percent – or 435,000 short tons - of production. Norampac converting operations will purchase 170,000 short tons of the production.

"The investment that we are announcing today is the result of the combined efforts of Cascades and its partners and is consistent with our development strategy which aims to position the company amongst the leaders in terms of productivity and profitability in the packaging and tissue sectors," said Alain Lemaire, president and CEO of Cascades. "As we have stated in the past, we strongly believe that Cascades' future success will be dependent on our ability to offer high performance innovative products which will better meet the needs of our customers, at a cost that will be amongst the lowest in the industry. Moreover, the innovative structure of this partnership will allow us to reach this objective while maintaining the financial flexibility achieved through recent divestitures. We are also confident in regards to industry's mid and long-term perspectives and we strongly believe that Greenpac will contribute positively to our net profitability once full ramp-up is achieved."

Marc-André Dépin, president and CEO of Norampac, said the Greenpac mill will include numerous technological advances, making it a unique project of its kind in North America.

“In particular, the linerboard that will be produced on the new machine will be able to achieve optimal strength while maintaining a low basis weight thereby allowing our customers to better respond to the growing trend towards lightweight packaging," Depin said.

Moreover, the building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Process water will be treated and reused in order to reduce consumption as much as possible and the state of the art management system for recycled fibers will have a positive effect on the environmental performance of the mill.

The paper machine will be manufactured by Metso, Voith will provide the stock preparation equipment and anaerobic effluent treatment plant and Siemens will provide the power and control technology.

Financing and Partnership

The $430 million cost of the project will be financed by a $140 million equity investment in Greenpac of, which $83.6 million will be invested by Cascades, $28.3 million will be invested by the Caisse and $28.1 million will be invested by Jamestown Container and another industry partner. The remainder of the financing will be in the form of debt, including senior debt in the amount of $228.9 million, which was led by GE Capital, and subordinated debt in the amount of $61 million.

Senior debt will be provided by an international banking syndicate managed by GE Capital. The subordinated debt will be provided by the Caisse and will serve to bridge expected refundable tax credits.

The construction of the mill will create 108 new jobs in the State of New York, as well as contribute to the economical development of the region.

New DuPont herbicide will contaminate compost

2011-06-20T06:39:00.001-07:00

New herbicide will contaminate compost
Composting News
By Ken McEntee
June 17, 2011
In reply to the U.S. Composting Council’s (USCC) request for a special review of the registration for the new herbicide Imprelis, the U.S. EPA Office of Pesticide Programs said it is seeking the advice of legal council about the matter. Imprelis, made by DuPont, can survive the composting process and remain active in a finished compost product.
The product label specifies that clippings from lawns treated with Imprelis should not be used as a mulch or placed in a compost pile.
Imprelis has been registered in every state except California and New York for use by licensed applicators on lawns and other turf areas for control of broadleaf weeds like dandelion, clover and plantain. The Composting Council of Canada said it doesn’t appear that Imprelis is available for sale in Canada, having yet to be registered through Health Canada’s Pest Management Regulatory Agency (PMRA).
USCC last month issued an alert warning composters to watch out for grass clippings contaminated with the new herbicide. USCC said grass from treated lawns could end up in a compost pile, and unlike most herbicides, Imprelis will survive the composting process and still be active in the finished compost. Preliminary research has shown that Imprelis does not break down significantly faster than the leaves and grass in the compost, so the concentration stays about the same. An unsuspecting gardener using contaminated compost could end up damaging their flowers and vegetables, most of which are also broad-leafed.
The product label contains a warning about composting:
“Do not use grass clippings from treated areas for mulching or compost, or allow for collection to composting facilities. Grass clippings must either be left on the treated area, or, if allowed by local yard waste regulations, disposed of in the trash. Applicators must give verbal or written notice to property owner/property manager/residents to not use grass clippings from treated turf for mulch or compost.”
In March, DuPont issued suggested language for applicators to use regarding management of grass clippings from areas treated with Imprelis:
“Today we have treated your lawn with an innovative weed control product from DuPont. The product label requires that you do not use grass clippings from areas treated with Imprelis for mulching or compost, or allow for collection to composting facilities. Grass clippings must either be left on the treated area, or, if allowed by local yard waste regulations, disposed of in the trash.”
"One problem is that the warning is on page seven of a nine page label," said Dr. Stuart Buckner, executive director of the USCC. “Unfortunately not everyone reads or follows the label. We are requesting the U.S. EPA initiate a special review of the registration due to the likelihood of residual herbicide levels in compost damaging non-target plants."
He said he received a reply from the EPA acknowledging the request and saying that the Office of Pesticide Programs is seeking the advice of counsel. No timeframe was given.
USCC said it is unlikely that municipal or commercial compost will contain significant amounts of Imprelis, though it is possible in suburban areas where a large amount of clippings could come from commercially treated lawns. It could especially be an issue for places like schools, recreational fields or golf courses that use their grass clippings to make compost and then use the compost in landscape beds or gardens instead of placing back on turf.
"We are alerting our members to this issue, that they need to make sure their haulers are informed to not bring them grass clippings that have been treated with Imprelis," Buckner said. "We also suggest they work with their state's bureau of pesticide applicator licenses to ensure applicators know about this restriction.”
DuPont said Imprelis, an innovative product to control a wide spectrum of broadleaf weeds, is the “most scientifically advanced turf herbicide in over 40 years.” Imprelis contains a single active ingredient – Aptexor - that is absorbed by the roots and shoots of target weeds providing consistent performance.
Aptexor, the first compound in an advanced generation of carboxylic acid herbicides, has unique properties at both the molecular and whole plant levels that translate into more powerful herbicidal activity. The most noticeable symptoms after application include the bending and twisting of stems and the cupping of leaves.

The Market: Recovered paper could see big shortages over the summer

2011-06-10T14:21:00.001-07:00

From The Paper Stock Report, June 10, 2011
Copyright 2011, McEntee Media Corporation

June 10, 2011
By Ken McEntee

Scrap paper traders are wondering whether summer will bring a spike in prices of old corrugated containers (OCC) and other grades. Since the beginning of June, export prices for OCC have moved upward about $10 a ton. But prior to that, even as OCC was been shipped out of the country in unprecedented levels during the first four months of the year, prices were relatively steady. In fact, pier prices in most markets actually were lower in May than in February and March.

In April, the latest month for which trade data is available from the U.S. Commerce Department, OCC exports to China reached 781,000 short tons – 10 percent higher than the record 710,000 tons in March. Yet FAS prices for China-bound OCC actually declined slightly between late March and late April. In New York, for example, prices dropped from about $202 per ton at the end of March, to about $199 per ton at the end of April, before sliding back up to about $202 in late May.

But traders note the seasonal downturn in OCC generation, and suggest that strong demand by domestic mills, along with Chinese mills kicking into high production season for end of the year holiday boxes could leave mills struggling to find tonnage.

On the other hand, other sources says, record volumes moving to China earlier in the year may have built inventories enough to avoid a surge in summer buying from mills in that country. Also, according to a West Coast broker, flooding and other severe weather conditions may reduce the supply of agricultural products this summer, meaning containerboard mills will be needing less OCC.

However, he says, “Mills are all saying that they have strong orders and they are nervous about the ability to gather up enough OCC through the summer.”

Export prices for OCC reached $230 per ton (FAS) at the Port of Long Beach during the second week of June, while going at $210 in Seattle. OCC exports out of New York were hitting the $210 per ton mark.

“OCC prices were flat for a long time,” said a broker in the Northeast. “Prices are starting to move.”

Still, he said he doesn’t expect to see a huge surge.

“I don’t know that we’ll see a huge spike, but if generation is down and demand stays strong, prices will only get stronger,” he said.

He, along with several other traders, noted that the three-day Independence Day weekend has some buyers nervous.

Traders reported that old newspaper prices (ONP) continue to hold steady despite a significant downtime and other reductions in ONP usage.

“Catalyst Paper’s Snowflake, Ariz. mill is down to half its normal consumption of ONP,” one supplier said. “At one point they has 215 boxcars from the Midwest lined up. They were delayed by the flooding and now they have a lot of fiber sitting down there.”

In Dublin, Ga., SP Newsprint was reportedly using about 500 tons less ONP per day than normal.

AbitibiBowater took market-related downtime at several of its mills in the Southeast U.S. and in Ontario. That was on top of mill closings by Blue Heron Paper, Oregon City, Ore., in February, and the, Katahdin Paper mill in East Millinocket, Maine, in April.

All of these capacity reductions are coming despite a weaker-than-normal U.S. dollar that is making U.S. newsprint attractive on the global market.

“Newsprint is a grade that is really hurting,” understated a supplier on the West Coast.

Chemical deinking grades, meanwhile, are in extreme short supply, causing some traders to wonder how mills will keep themselves furnished through the summer.

“Sorted office paper is under assault,” said a broker in the Northeast. “The pipeline is dry and there is nothing on the horizon to derail that trend. While the demand for away-from-home napkins is showing some signs of life, those mills are going to need fiber to produce their product. The price could go to the moon, but that isn’t going to create more paper.”

Sorted Office Paper (SOP) this month pushed up about $10 a ton.

Along with declining supply has come deteriorating quality.

A couple mill buyers reported that their old nemesis – self-adhesive labels – are beginning to be a problem.

“We’ve had a deinking specialist in this week to see what we can do about it,” said the buyer for a Northeastern tissue mill.

China’s crackdown on small mills helps Orient Paper

2011-05-25T08:35:00.000-07:00

Source: The Paper Stock Report / Paper Recycling Online

The Chinese government claims its mandated closure of hundreds of small, independent paper mills is due to the pollution caused by these mills. Is that the real reason, or is the government squashing small business to the advantage of giant, publicly traded paper making corporations?

May 10, 2011

Double digit growth in revenue and net income for China’s Orient Paper Inc. was partially attributed to the government’s crackdown on small mills. Orient Paper, a leading manufacturer and distributor of diversified paper products in northern China, said first quarter revenue increased 25.6 percent year-over-year to $33.2 million and gross profit increased 60.6 percent year-over-year to $7.8 million, with gross margin of 23.4 percent. Net income increased 55.2 percent year-over-year to $4.9 million.

"Our double digit growth in revenue and net income during the first quarter of 2011 was largely due to higher selling prices resulting from factors related to inflation on commodity costs in China and strong market demand and a supply shortage caused by the government-mandated closure of smaller paper manufacturers in the second half of 2010," said Zhenyong Liu, chairman and CEO.

Due to the loss of an old corrugating medium paper production line since June 2010 to make room for the new production line under construction, revenue from corrugating medium paper amounted to $8.5 million in the first quarter of 2011, representing a decline of 10.5 percent compared to $9.5 million in the year ago period.

Despite a decrease of 9,139 tons in total quantity sold, ASP for corrugating medium paper rose 26.6 percent from $304 per ton in the first quarter of 2010 to $385 per ton in the first quarter of 2011 as a result of increasing customer demand and regional shortage in supply of paper products, caused by government mandated closures of other smaller paper manufacturers Orient said.

More...

Amazon now selling more Kindle books than paper books

2011-05-25T07:15:00.000-07:00

May 19, 2011

The demand for paper books is on the decline, according to Amazon.com. Less than four years after introducing Kindle electronic books, Amazon’s customers are now purchasing more Kindle books than all print books – hardcover and paperback – combined.

“We had high hopes that this would happen eventually, but we never imagined it would happen this quickly, said Jeff Bezos, Amazon’s founder and CEO. “We've been selling print books for 15 years and Kindle books for less than four years.”

More...

Composting Council to search for new executive director

2011-05-03T06:21:00.000-07:00

From Composting News, May 2011

By Ken McEntee

Frank Franciosi, president of the U.S. Composting Council, said the USCC board will conduct a nationwide search for an executive director. Present executive director Stu Buckner’s contract expires at the end of 2011. Buckner will be considered as part of the search if he wishes to be.
Franciosi said the USCC board has retained the services of Sterling Martin Associates, a national firm, to conduct the search.
“This will be an open and transparent search that will include our existing executive director, staff and members, as well as individuals within and outside the composting industry,” Franciosi said. “We are confident that Sterling Martin Associates possesses the skills and experience to deliver the leadership that the USCC wants and deserves.”
“The search is due diligence on our part as a board, to see who is available and at what salary,” Franciosi said.
The board in 2010 did a compensation study for the executive director’s position and other positions within the organization. However, he said, salary is not an issue in Buckner’s possible replacement, noting that Buckner’s earnings as executive director are substantially incentive based.
Franciosi said in the announcement that USCC is entering a “new phase of growth.”
He didn’t indicate that the board has any philosophical differences with Buckner regarding the future direction of the organization.
The search process is expected to launch in early May.
Buckner, who previously served as USCC president, was hired as executive director of the struggling organization in December 2001. Since that time, USCC membership has grown substantially and is on a solid financial footing. Net assets as of the end of 2009 exceeded $715,000.
Matt Cotton, who served three years as president, acknowledged the progress made by the organization during Buckner’s leaders, but said conducting the national search “is the responsible thing to do.”

Paper recycling market update

2011-02-15T15:37:00.000-08:00

IN BRIEF:Short investories have bitten some mills in the backside. After expecting a mild February, short supplies of groundwood and old corrugated containers have driven prices upward. Citing a bad deal for shareholders of Smurfit Stone Container Corp, investment firms that claim to hold 9 percent of Smurfit's common stock have expressed their intention to vote against the merger of Smurfit with Rock Tenn Corp.

See the latest issue of The Paper Stock Report or Paper Recycling Online for the latest information.

January 2011 Composting News

2011-01-20T10:22:00.001-08:00

Headlines from the January 2011 issue of Composting News

Ohio releases updates to composting rules

Dow to restrict aminopyralid usage to limit compost exposure

Enviva LP plans North Carolina wood pellet plant

Michigan extends public comment on compost rules

EPA to defer greenhouse gas permitting for biomass plants

National compost prices

SWANA e-session: best practices in food waste programs

EPA releases data on animal feeding operations

Waste Management to open organics plant in Florida

Compost product news: Morbark, Vertal, Peterson

The latest paper recycling headlines

2010-09-29T17:44:00.000-07:00

For more information, visit Paper Recycling Online.

The latest paper recycling news:
Most of these articles are published by Paper Recycling Online, The Paper Stock Report and/or Recycled Paper News. They are available to paid subscribers and require a password for access. Some links are to articles of interest published by other parties and are linked only for the convenience of our visitors. McEntee Media Cop. does not take responsibility for the content or accuracy of reports of outside publications.
For information about subscribing to Paper Recycling Online, click here.

# New Waste Management single stream system features new paper technology
September 25, 2010
# White Birch deal is in the court's hands
September 25, 2010
# Clearwater Paper to acquire Cellu Tissu - probably
September 25, 2010
# Young folk trail elders on paper recycling, Boise finds
August 16, 2010
# Domtar campaign promotes the responsible use of paper
September 25, 2010
# City Carton raises $104,700 for kids with cancer
September 24, 2010
# Sappi Waste Paper becomes Sappi ReFibre
September 20, 2010
# Retailers support recycled, BPA-free thermal paper
September 22, 2010
# China drives record month for OCC exports
September 10, 2010
# Europe recycled 72.2 percent of its paper, ERPC says
September 10, 2010
# Newark Group emerges from bankruptcy
August 16, 2010
# The Market: Shiplines negotiating rates; ONP market is "ugly"
August 10, 2010
# TD to participate in North American closed loop paper recycling system
August 10, 2010
# FutureMark notes growing adoption of environmental paper
August 10, 2010
# Class action files on behalf of Orient Paper shareholders
August 10, 2010
# Alex Ding named Smurfit sales director in Shanghai
August 10, 2010
# Court rejects recycler's appeal on liability case
August 10, 2010
# Purac to produce lactic acid from papermaking waste streams
August 10, 2010
# Rock-Tenn gets triple chain-of-custody certification
August 10, 2010
# AF&PA names recycled fiber director
August 10, 2010

The latest in the paper recycling market

2009-08-24T07:37:00.000-07:00

The latest paper recycling news:
Visit our Web site for more information about Paper Recycling Online.

# The Market: OCC not as strong as perceived, traders say
August 10, 2009
# Sonoco Recycling expanding Charlotte,N.C. operations
August 10, 2009
# Sonoco, Rock-Tenn to raise recycled paperboard prices
August 10, 2009
# Greenpeace and Kimberly-Clark come to a truce
August 10, 2009
# Marcal CEO challenges Greenpeace, Kimberly-Clark truce
August 10, 2009
# Harmon gets name change at GP
August 3, 2009

U.S. paper production down in 2008

2009-05-09T06:36:00.000-07:00

U.S. paper and paperboard capacity edged down 0.8 percent in 2008 to 96.3 million tons, slightly below the 1.0 percent annual rate of contraction recorded from 2001 through 2007. Total fiber consumption at U.S. paper and paperboard mills fell 3.8 percent to 89.4 million tons in 2008. More....

International Compost Awareness Week

2009-05-06T11:43:00.000-07:00

McEntee Media Corp.'s Composting News is one of the U.S. co-sponsors of International Compost Awareness Week, May 3-9, 2009. Composting News joins other co-sponsors like Coca-Cola, Chinet, Chick-fil-a and Garick in the annual campaign to create awareness about the benefits of compost and other natural and organic products. www.compostingnews.com

2009-05-06T10:39:00.000-07:00

The Write Company has created new advertorial features this month for Mimi VanderHavens Fabulous Buys:

D&L Recycling, Valley City, Ohio
The Green Smith Garden Center and Gift Shop, Hinckley, Ohio
Southwest General Health Center, Middleburg Heights, Ohio
Kizy Construction, Hinckley, Ohio
Green Tree Landscaping, LaGrange, Ohio
Justice and Company, Medina, Ohio
Vespa Scooters of Cleveland, Warrensville Heights, Ohio
Madd Chef's, Brunswick, Ohio
The Corkscrew Saloon, Medina, Ohio
Smoke 51 Ohio

National Recycling Congress cancelled

2009-05-06T10:31:00.000-07:00

The NRC board made the decision one week ago. It was announced today:

On April 29, the Board of Directors of NRC decided to cancel this year's annual Congress and Exhibition that was scheduled for Portland, OR, October 4-7, 2009. This decision was reached only after an extensive analysis of likely attendance and exhibitor and sponsor financial support, and with consultation with the host State and key NRC leadership. An overriding factor was the ability of our diverse and geographically dispersed membership to attend this year's Congress in light of limited government and business budgets and problematic travel restrictions. We very much regret having to take this step, but look forward to working with each of you in the following year to restore Congress to its rightful role as the central networking and educational event for the nation's recycling community.

Sincerely,
NRC Staff

AbitibiBowater files bankruptcy

2009-04-16T08:09:00.000-07:00

AbitibiBowater today filed for Chapter 11 bankruptcy protection in the U.S., and plans to file for creditor protection tomorrow in Canada. The company said it normal day-to-day operations will continue during the restructuring process. For more information see Paper Recycling Online.

The latest Write Company articles for Mimi's

2009-04-08T15:09:00.000-07:00

The Write Company contributed eight news advertorials to the April 2 issue of Mimi Vanderhavens Fabulous Buys.

# Medina Exteriors, Medina
# Westwood Place, Strongsville
# Perfect Power Wash, Akron
# Oasis Sunrooms and Windows, Berea
# Thyme the Restaurant, Medina
# PSE Credit Union, Strongsville
# Southwest General Health Center, Middleburg Heights
# Priced Less Foods, Middleburg Heights

News from the paper recycling business

2009-04-08T14:48:00.000-07:00

Paper recycling market news:
* Taking advantage of the lowest prices since 04 China imported 400,000 tons of OCC from the US in January. www.recycle.cc/freepapr.htm
* US sets record paper recovery rate, but scrap paper consumption falls in 2008. www.recycle.cc/papernews.htm
* Average US scrap paper price inches up to $123.47. www.recycle.cc/papernews.htm

A message from the National Recycling Coalition president

2009-03-30T15:47:00.001-07:00

Dear NRC Members:

We are sending you this note, and the attached letter, in an effort to keep you informed of the activities of the NRC in these very challenging economic times. In February, the Board had written to the State recycling leadership and key stakeholders and informed them of the steps that the Board was undertaking in fulfillment of its fiduciary responsibilities. A copy of that letter is attached. The circumstances under which that letter was written have not changed. To bring you up to date, I would first like to emphasize that no decision has been made regarding the future of the organization, so statements to the contrary are inaccurate. Secondly, as we analyze the various options available to us, the Board has reached out to State recycling leaders for their valued advice. Finally, and to reiterate what is in the letter, on any issues involving merger and certain other major organizational options, it is the membership, through our by-laws, who is ultimately empowered to decide the future of the organization, and we are cognizant and respectful of that at all times during our deliberations.

In the meantime, we ask for your continued patience and understanding.

Sincerely, on behalf of the Board of Directors,
David Refkin, President

National Recyclng Coalition disbanding?

2009-03-26T08:15:00.000-07:00

Reports from the Carolina Recycling Association conference that the NRC board of directors will be meeting this afternoon to decide on the fate of the organization. Among possibilities are voting to go out of business or to be taken over by Keep America Beautiful. Stay tuned.

Another paper mill closing

2009-03-19T08:39:00.000-07:00

Another paper mill closing. Caraustar permanently closed its Carolina Paperboard mill today. www.recycle.cc. Sonoco also closing Lancaster.

The latest news in paper recycling

2009-03-18T09:18:00.000-07:00

The Market: Fear of bankruptcy hovers over scrap paper sales
March 10, 2009

Stadacona to take market downtime
March 10, 2009

Mohawk buys SMART Papers line
March 10, 2009

Orchids introduces 100 percent recycled tissue lineMarch 10, 2009

Lenzing says deinking expansion still on schedule
March 10, 2009

Sonoco closing Lancaster, Ohio paperboard mill
March 10, 2009

European mills, suppliers using ID system
March 10, 2009

Scrap paper markets

2009-03-16T15:36:00.000-07:00

Most mills are reportedly jammed with old corrugated (OCC), but mills going through financial problems are paying premiums to get hesitant suppliers to send tonnage their way. Despite almost daily announcements of newspaper closings and bankruptcies, prices for old newspaper (ONP) remain stronger than expected. Look for upcoming export problems - containers and/or ship space is getting hard to come by. See The Paper Stock Report www.recycle.cc/freepapr.htm.

Bay Village mayor slanders Image Builders

2009-03-03T12:25:00.000-08:00

In one of the most irresponsible public statements in memory, Bay Village mayor Debbie Sutherland, during a City Council meeting on February 2, falsely charged that Image Builders Marketing was the "reformulation" of Garnett Publishing, a magazine publisher that took money from advertisers a couple years ago, then filed for bankruptcy without publishing the magazines it had collected advertising money for.

The mayor's comments were related to the recent Bay Village Community Guide, published by Image Builders. Through The Write Company/McEntee Media, I was the editorial consultant and writer for the magazine.

Sutherland, who refused to be interviewed, or to cooperate in the production of the magazine which promotes the city of Bay Village and local businesses, said at the council meeting that the city did not "sanction" the Image Builders publication. She said that she was not comfortable working with Image Builders because she didn't feel the company was "reputable" due to the fact that Garnett screwed businesses in Bay Village and other cities.

She then slandered Image Builders, claiming that Garnett filed for bankruptcy, then reformulated as Image Builders.

The mayor was well aware of the fact that Garnett and Image Builders were not related - this was explained to Sutherland and/or her secretary on many occasions by me, Bernice Kaldy, owner of Image Builders, and Scott Hughes, sales rep for Image Builders, whom Sutherland has known personally for many years. Garnett, prior to going bankrupt, was Image Builders' main competitor.

Kaldy and I publicly addressed the mayor at last night's city council meeting, calling her to task for her slander of Image Builders and for for rather monarchistic suggestion that a mayor may "sanction" the press. Kaldy requested a written retraction from the mayor, who sat silently and did not offer a response.

Sutherland, during production of the Bay Village Community Guide refused to cooperate or be interviewed for the magazine that promoted the city she was elected to serve. Failing to get an interview with the mayor, I interviewed Councilman Jim Scott, who will run against Sutherland for mayor this fall. Sutherland was reportedly upset that her mayoral opponent was quoted in the magazine.

She had her opportunity, but rejected it.

Early on, when Sutherland's help was solicited, she said she would not support any community magazines from any publisher due to the experience with Garnett. Shortly afterward, however, she agreed with The Plain Dealer, Cleveland's daily newspaper, to produce a magazine for the city.

The Plain Dealer endorsed Sutherland in her unsuccessful race against Cuyahoga County Commissioner Peter Lawson Jones in November. As a member of the Central Committee of the Cuyahoga County Republican Party, I also supported and campaigned for Sutherland.

The Plain Dealer, suffering from the same financial problems as newspapers around the country, evidently is expanding into new revenue sources, such as the production of community guides in competition with Image Builders, Great Lakes Publishing and other companies.

The Plain Dealer, whose parent company also owns Cuyahoga County's chain of weekly newspapers, has published community magazines for Lakewood, Brooklyn and Brunswick. The production of magazines in cooperation with the municipalities for which it is supposed to provide neutral and unbiased news coverage seems to border on a conflict of interest.

Image Builders has been in business for eight years, publishing community magazines for around 20 different cities. Most of the magazines are done with some degree of cooperation with the local government, but some are not.