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February 2014 — Paper & Packaging Monitor Paper & Packaging Monitor (Inventory & Equipment)
1 February 2014 — Paper & Packaging Monitor
1 Pricing Trends
Paper & Packaging Monitor (Inventory & Equipment)
1 February 2014 — Paper & Packaging Monitor
1 Pricing Trends Trend Tracker
Market Prices
Quarter Year
Paper
Packaging
Pulp
Paper Packaging
NOLVs
Sales Trends
Gross Margin
Inventory
Paper / Printing / Bindery
Used Pricing
Used Trade Movement
OEM Pricing
Technology
Advancement
Auction Activity
NOLVs: Paper NOLVs have been consistent to decreasing, with
decreases largely due to a poor inventory mix. Packaging NOLVs have
been decreasing due to a poor inventory mix, as well as input cost
increases.
Sales Trends: Sales were mixed among paper operators, with demand
limited for small-volume paper grades but strong for specialty papers.
Sales were consistent to decreasing for packaging operators, with
demand limited for small-volume boxes.
Gross Margin: Gross margins have remained consistent for paper
products but have decreased for packaging due to lingering effects
related to rising input costs.
Inventory: Mill inventories were mixed, with levels increasing for
uncoated printing and writing papers. Overall box inventory levels
decreased due to mill market downtime.
Pricing: Pricing for printing-writing paper was mixed, with top
producers recently announcing price increases for certain uncoated
paper grades. Pricing remained consistent for newsprint and
paperboard due to limited demand. Prices for pulp largely increased at
the end of 2013 due partly to the transportation logjam caused by cold
weather in much of the U.S., while prices for packaging remained
consistent.
Used Pricing: Equipment prices are generally consistent due to the
stability of the pulp and paper mill industry as the result of weaker
players leaving the industry and regular demand for paper
consumables.
Used Trade Movement: Equipment in this sector has seen consistent
movement. Consistent with the prior quarter, movement is stronger for
late-model and smaller converting equipment.
OEM Pricing: Pricing on new machines has remained consistent.
Moving forward, there is potential for OEMs to lower prices in order to
attract end users away from the used market and into the market for
new equipment.
Technology Advancement: Technological advancement has remained
consistent, with little to no technological advancement announced
publicly.
Auction Activity: Auction activity remains consistent due to the
strength of the remaining industry players, as the majority of struggling
players exited the industry during the Great Recession.
2 February 2014 — Paper & Packaging Monitor
2 Pricing Trends Overview
The gross domestic product (“GDP”) grew at
a seasonally adjusted annual rate of 3.2% in
the fourth quarter of 2013, according to the
U.S. Commerce Department. When combined
with the prior quarter’s 4.1% growth, the
second half of 2013 represented the strongest
second-half U.S. GDP growth since 2003.
As a result, demand for corrugated boxes,
which are used to ship virtually any kind of
consumer good, was strong in the latter
portion of 2013. However, box shipments in
2013 were flat on an actual basis, representing
the third straight year of flat box demand.
Paper continues to lose ground to digital
technology, as illustrated by satirical paper
The Onion’s cessation of its print edition in
December 2013.
The move was no laughing matter for the
newspaper industry, which continues to
experience eroding advertising revenue,
declining readership, and newspaper
closures. As a result, domestic demand for
newsprint has been limited, along with
demand for certain printing-writing paper
grades.
Pricing for pulp, meanwhile, increased late in
2013.
The spot pulp market, in particular,
experienced a boost due to buyers scrambling
for alternative pulp supply sources as a result
of shipment problems arising from the
extreme cold that impacted much of the U.S.,
including the Northeast, Southeast, and
Midwest, in late 2013. However, analysts
predict that pulp market prices have peaked
and prices will stabilize through March.
In addition, the changing business landscape
has been on the minds of many analysts, who
are anxiously awaiting to see what impact the
pending merger of xpedx and Unisource
Worldwide, Inc. (“Unisource”) will have on
the paper and packaging industry. The new
company will have projected annual revenue
of $9 billion to $10 billion and will have
approximately 9,500 employees across more
than 170 distribution centers in North
America. The transaction is expected to be
completed in mid-2014.
Some industry insiders wonder how customer
accounts will be allocated and how
customers’ credit will be maintained due to
the presence of so many formerly competing
contingents within the new company.
International Paper (“IP”) owns xpedx, while
Unisource is jointly owned by Bain Capital
and Georgia-Pacific.
Indicators are declining for the paper and packaging industry, as weak
demand for non-durable goods during the fourth quarter kept box
shipments relatively flat. In addition, paper, particularly newsprint,
continues to be challenged by digital technology. Nonetheless, the recent
gradual improvement in the economy has spurred demand for office paper.
3 February 2014 — Paper & Packaging Monitor
3 Pricing Trends Overview
The paper industry’s latest chapter tells the same story: the industry continues to lose ground to digital
technology, which has enabled consumers to
instantly access written information online and avoid
consulting books, magazines, and newspapers in the process. Increasingly, the devices of choice for
consumers are tablet computers and smartphones,
with Apple, Inc.’s iPad and iPhone leading the way. However, the industry has experienced slightly
increased shipments recently due largely to economic
improvements, which has spurred demand for
certain types of office paper.
According to recent figures from the American Forest
& Paper Association, total printing-writing paper
shipments increased 2% in December 2013 versus December 2012. The increase follows year-over-year
decreases of 1% and 6% in October and November,
respectively. As printing and writing paper grades are utilized to produce a number of paper products,
including magazines, newspapers, and office paper,
they serve as an indicator of overall paper demand.
The performance of the papers varied by grade, with uncoated papers, including uncoated freesheet and
uncoated mechanical, performing better than coated
grades.
Uncoated freesheet paper represents the largest
category of printing and writing papers and includes
copy and printer papers used in offices. The recent
resurgence in uncoated freesheet paper is likely a
direct result of improvements in the economy, as
demand for office paper increases in line with a
growing economy and reduced unemployment.
Coated freesheet papers are generally the highest
quality printing papers available. They are very
smooth and can produce very high resolution prints.
Coated freesheet papers are commonly utilized for
illustrated books. Coated mechanical papers,
meanwhile, are used for magazines and catalogs.
The poor recent performance of these categories
illustrate the ongoing decline of the printed word in
developed countries, as consumers continue to
eschew magazines and books in favor of tablet
computers and e-book readers.
For all of 2013, uncoated freesheet, as well as coated
freesheet, shipments were each down 2% below 2012
levels, and coated mechanical shipments decreased a
significant 9%.
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
Printing-Writing Paper Shipments(Tonnes in 000s)
January Through December 2013
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
Printing-Writing Paper Shipments(Tonnes in 000s)
January 2013 Through December 2013
4 February 2014 — Paper & Packaging Monitor
4 Pricing Trends Overview
Ongoing improvements in the economy helped
sustain box shipments late in 2013. Corrugated and
solid fiber boxes are the shipping containers of choice
in a number of markets due to their cost-
effectiveness, excellent protective performance, and
limited competition from other packaging
alternatives. As a result, overall economic growth is
generally beneficial to box producers.
Demand has been particularly strong for durable
goods. However, analysts note that demand for
corrugated packaging was limited in the last quarter
of 2013 due to weak, albeit slightly increased,
demand for non-durable goods, which consist of
items that are readily consumable, such as food and
gasoline.
Various statistical indicators point to improvements
in the overall economy, including a growing GDP,
falling unemployment, and rising consumer
confidence.
All of these indicators are good signs for box
suppliers. In addition, consumer confidence rose in
January as consumers grew more optimistic about
both business conditions and the job market,
according to a report recently released by The
Conference Board, an industry group. The
Conference Board reported that its index of
consumer attitudes exceeded expectations in January
by rising to 80.7 from 77.5 in December, which
represented the third-straight monthly increase.
Rising consumer confidence boosted consumer
purchasing later in the year, particularly for non-
durable goods.
According to RISI, Inc. (“RISI”), box shipments in
December were up 5.7% versus December 2012;
however, shipments were relatively flat when one
extra shipping day in December 2013 is taken into
account. That figure follows a 2.5% shipment
decrease in November versus the same month in
2012. In October, box shipments decreased 2.4% over
October 2012’s figures. For the full year, box
shipments were flat compared to a year ago, but 0.4%
higher on an average-week basis versus 2012.
27.0
28.0
29.0
30.0
31.0
32.0
33.0
Box Shipments(Square Feet in Billions)
January 2013 Through December 2013
5 February 2014 — Paper & Packaging Monitor
5 Pricing Trends
Containerboard consists of linerboard and
corrugating medium, the two main paper grades
used to make corrugated boxes. Linerboard is the
flat outer facing, while medium is the wavy inner
layer of combined corrugated board cut up to make
boxes. Containerboard inventory levels largely
decreased over the past quarter.
In October, containerboard inventories declined by
89,000 tons, or 3.7%, to 2.3 million tons largely due to
a low operating rate of 94.7% for the month due to
seasonal factors and sluggish box demand.
According to a report from RISI, in November, U.S.
containerboard inventories at box plants and mills
declined by 40,000 tons versus the prior month to 2.3
million tons. The decline was uncharacteristic, as
inventories typically increase in November.
The decline in inventories resulted from the fact that
the U.S. containerboard operating rate for November
was dramatically lower than normal due to mills
taking downtime for maintenance or market
purposes.
November’s figure represented the lowest operating
rate recorded by the industry since December 2009,
when the economy was recovering from the Great
Recession, according to the industry publication
Scoring Boxes.
However, inventories rose in December. U.S.
containerboard mills continued to run at relatively
low levels in December. As a result, analysts were
expecting a decrease in inventory levels.
Nevertheless, December’s inventory levels grew 1.4%
over November’s figures. Mills operated at 91.4% of
capacity in December, an increase from November's
unusually low level of 90.7%.
Containerboard producers appear to be doing
whatever is necessary to keep inventories at
manageable levels, which, according to some
producers interviewed by RISI, is good for the long-
term health of the containerboard industry. An
improvement in box demand would be highly
beneficial to producers, as it would limit their need to
take market downtime and would tighten the
industry's supply-demand balance, RISI noted.
Overview
6 February 2014 — Paper & Packaging Monitor
6 Pricing Trends Recent Appraisal Trends
Overall paper recovery values were consistent to
decreasing over the past quarter versus the previous
quarter due to declining demand for certain paper
grades, particularly coated paper, which is often used in
magazines and catalogs.
Mills continue to look overseas for additional demand
due to declining demand for certain paper grades as a
result of competition from digital media. Meanwhile,
restructuring and consolidation continue to be the
domestic trend. For instance, the pending merger of IP
and xpedx is expected to occur in 2014, while a merger
of Cenevo, Inc. and NE Opco, Inc. was approved in
September 2013.
GA’s experience indicates that more generic paper
categories experience higher recovery values on a cost
basis, while paper categories that consist of uncommon
colors or grades, or are customized in some way,
recover less unless they are tied to a purchase order or
customer contract. Demand for such customized goods
is generally extremely limited beyond their intended
customers.
Pulp is a commodity product that is used to produce
wood-based goods, primarily paper and paperboard,
which maintain a variety of uses. As a result, appraisals
for pulp largely depend on market prices.
Approximately 50% of all produced paper is utilized for
packaging, followed by printing, and writing. The
consumption of wood pulp generally correlates with
overall economic trends, as consumers purchase more
packaged consumer goods when the economy is robust.
In appraisals involving pulp, the inventory at cost is
compared to spot or contract market prices as well as
competitors’ inventory at cost. Recovery values for pulp
take into consideration discounts applied based on
demand, availability, and the types and size of
customers.
For appraisals conducted in 2013, recovery values for
pulp remained relatively flat versus the previous year.
GA recognizes that recovery values could be impacted
by more recent increases in pulp market prices.
For instance, over the last quarter of 2013, pricing
increased for softwood and hardwood pulp due to
lower stocks, delayed shipments due to unseasonably
cold weather in the U.S., as well as increased demand.
Chips and wood are also commodity in nature and
subject to market price fluctuations. Woodchips are
often used as a biomass solid fuel and are raw material
for producing wood pulp.
These goods are available via numerous local, regional,
and national vendors in North America. As a result,
chips and wood generally achieve lower recovery
values, with discounts necessary to encourage large
purchases. Recovery values for chips and wood
remained constant through the end of 2013 as market
conditions continue to slowly improve.
Recovery values for packaging products decreased in
the fourth quarter of 2013 versus the prior quarter.
Lower recovery values were primarily driven by
unfavorable changes in inventory mix and the lingering
effects related to rising input costs, particularly for roll
stock, which reduced gross margin.
In GA’s experience, custom packaging products
generally experience lower recovery values unless they
are tied to contracts that obligate customers to purchase
their related custom goods, as such items maintain
limited distribution channels outside of their intended
customers.
GA considers various other factors when developing
recovery values for custom items, including contract
terms, stocking agreements, lead times for customers to
secure an alternative supplier, and whether the
company is the sole supplier of inventory to its
customers.
7 February 2014 — Paper & Packaging Monitor
7 Pricing Trends Pricing Trends
List prices for pulp largely increased at the end of 2013,
and spot prices were up as well, as the transportation
logjam caused by frigid weather in much of the U.S. had
buyers scrambling to secure additional pulp inventory
from alternative sources.
After effective list prices in North America largely
increased during the last quarter of 2013, northern
bleached softwood kraft (“NBSK”) pulp prices started
the new year at the highest U.S. NBSK list price since
July 2011, according to data from RISI. The cumulative
NBSK rise since September is $65 per ton. Low
producer stocks of bleached softwood kraft (“BSK”),
delayed shipments, and fresh demand in some parts of
North America helped producers of NBSK drive up
effective list prices. Still, the price increase push by
producers also ran up against pockets of buyer
resistance amid less-than-robust paper demand, RISI
reported.
Some industry insiders predict that domestic NBSK
prices will not continue to rise in the near term because
the Canadian dollar fell nearly 5.0% in late 2013 versus
the U.S. dollar, which spurred exports and boosted the
profits of Canadian pulp producers.
The effective list price of bleached eucalyptus kraft
increased to approximately $860 to $880 per ton, and list
prices for northern bleached hardwood kraft (“NBHK”)
and southern bleached hardwood kraft (“SBHK”) both
increased as well, according to RISI reports. For
bleached hardwood kraft (“BHK”), three key grades
edged up $10 per ton in the U.S. after an oversupply in
BHK waned at the end of November.
Though some producers believe another round of
softwood pulp price hikes in the U.S. could occur early
in 2014, such a move may depend on what happens in
China, according to a RISI report, as China's traders
have been holding off on placing purchase orders
because local net prices for NBSK were below
international net levels on a U.S. dollar-equivalent basis.
$500
$550
$600
$650
$700
Pulp Average Spot Market Price Per Ton
January 2013 Through January 2014
8 February 2014 — Paper & Packaging Monitor
8 Pricing Trends Pricing Trends
U.S. coated paper markets are off to a difficult start in
2014, as the Postal Regulatory Commission
implemented a 4.3% rate increase in January. The
increase is being implemented to offset losses the U.S.
Postal Service has suffered in recent years as the result
of the Great Recession and reduced use of traditional
mail service by consumers due to digital competition.
Along with an inflation-based rate increase of 1.7%, the
overall postal rate adjustment is 6.0%, which represents
an increase of $0.03 from 2013 rates to total $0.49.
Some in the paper industry predict that there will be
some reaction from catalog and magazine publishers as
the result of the increasing costs associated with mailing
printed products, according to Paper Trader magazine.
Potentially, direct mail, catalogs, and even magazines
could pull back print distribution and shift to electronic
and mobile applications to avoid paying the higher
postal rates.
Coated papers fall on the high end of the publication
grade spectrum and are usually selected for brightness
and gloss. They are generally preferred for magazines
and high-gloss catalogs.
Partially as a result of the aforementioned development
and declining demand, most coated paper prices were
approximately $60-per-ton weaker at the start of 2014
than they were at the start of the fourth quarter of 2013.
In the second quarter of 2013, a $40-per-ton increase was
announced by almost all North American producers for
coated mechanical papers, RISI noted. However, by
November, the summer's increase was being resisted
across the board by buyers.
Some industry insiders expect the combination of a
weaker demand outlook and lower pricing will cause
coated paper mills to ramp up their production of
uncoated products – particularly of uncoated freesheet –
now that a fourth-quarter price hike for uncoated
freesheet is gaining market traction.
Uncoated freesheet prices in the U.S. increased broadly
for the first time in three years from October through
January, rising by $20 on cutsize to up to $50 for offset
rolls and printing and converting grades. In addition,
in the fourth quarter, IP announced a $70-per-ton price
increase across its North American uncoated freesheet
business effective in early March. The announced
increase comes on the heels of a previous $60-per-ton
price increase announcement for uncoated freesheet in
October.
$820
$920
$1,020
$1,120
Uncoated PaperAverage Spot Market Price Per Ton
January 2013 Through January 2014
9 February 2014 — Paper & Packaging Monitor
9 Pricing Trends Pricing Trends
IP’s increase was announced just before the company
was expected to retire the final two paper machines at
its Courtland, Alabama mill, which produces
approximately 1 million tons of paper per year,
according to PPI Pulp & Paper Week. The mill's uncoated
freesheet capacity is 765,000 tons per year, which
represents approximately 8% of North America’s
uncoated freesheet capacity.
Newsprint statistics from the Pulp and Paper Products
Council show North America's domestic demand
declining in the fourth quarter of 2013. However,
newsprint exports increased, including a massive
increase in December, which offset the domestic decline.
Newsprint continues to be attractive in developing
nations, as the use of smartphone and tablet computers
is not as prevalent in such regions compared to
developed nations. The long-term trend for the
industry, however, continues to decline.
A $40-per-ton price increase for newsprint failed in July
2013 due to hesitation by producers, but a $15 increase
in the Western U.S. took hold in September, ending
close to five years of disparity between the two coasts
on pricing, according to RISI.
Naturally, the fate of the domestic newsprint market
continues to be tied to the struggling newspaper
industry. Judging by recent figures from the nation’s
most prominent newspapers, the newspaper industry’s
outlook remains grim.
For instance, the New York Times Co. reported a 6.5%
decline in print and online advertising for the fourth
quarter of 2013 versus 2012, and News Corp. reported a
10% ad revenue drop. Dow Jones, which owns the Wall
Street Journal, reported that subscription revenue
declined 7%. The New York Times Co. said its fourth-
quarter earnings dropped by 63%.
$525
$550
$575
$600
$625
Newsprint Average Market Price Per Ton
January 2013 Through January 2014
10 February 2014 — Paper & Packaging Monitor
10 Pricing Trends
Pressure remained on containerboard prices during the last quarter of 2013 due to weaker-than-expected corrugated box demand, new startup tonnage entering the market, and high mill production levels this summer that increased supplies, according to RISI. Even though linerboard and corrugating medium prices overall remained relatively flat, some larger operators reported receiving bulk discounts on the spot market. In addition, some industry experts noted in a RISI report that linerboard export prices continue to drop, with prices starting to fall $10 to $20 per metric ton at the Laredo, Texas border to Mexico in December. The latest containerboard-related price increase was $50 per ton in the spring of 2013. Market conditions later in 2013 did not support potential increases in market prices. Prices came under mild pressure in late 2013 due to a summer jump in inventories, sluggish box demand, and startup of more than 1 million tons per year of new or converted containerboard capacity.
Inventories reached 2.5 million tons, or 4.3 weeks of supply, at the end of August as mill operating rates reached 99.7%. Producers implemented market-driven downtime during the last quarter of 2013 as a result. RISI had expected a much larger decline in box inventories due to the low mill operating rates in the last quarter. If the pace of box shipments do not increase, price deterioration could become a possibility for producers, RISI noted. Despite the current business climate not being conducive to price increases, the North American containerboard industry could benefit if global old corrugated container, or recycled box, prices take off again in response to demand from China and already high recovery rates for used boxes in the U.S. This could improve the competitive export position of U.S. producers in global markets, according to RISI. About three quarters of U.S. containerboard is shipped to integrated producers to be consumed in their own box plants or traded with other containerboard producers. The remainder is sold in the domestic open market to independent converters or exported overseas, according to RISI.
$600
$700
$800
$900
$1,000
$1,100
$1,200
Paperboard and ContainerboardAverage Market Price Per Ton
January 2013 Through January 2014
11 February 2014 — Paper & Packaging Monitor
11 Pricing Trends Paper and Packaging Equipment
Pulp and paper mills are finding themselves in a period
of exceptional stability, with prices and levels of trade in
the fourth quarter of 2013 consistent with the prior
quarter. Industry analysts say the consistency is due to
the strength of the players remaining in the industry.
During the recent economic downturn, various pulp
and paper mills closed their doors and their equipment
was liquidated, as the downturn limited demand for
wood-derived products. Industry insiders explained
that the companies and mills that went under during
that period were generally already struggling. In
contrast, the paper and pulp mills that remain are the
ones with the staying power and resources to weather
the economic storm. As a result, the industry is
currently populated by players who have the strength
to stay in business and no need to sell their machinery
at a liquidation.
Paper mill machinery and equipment generally arrives
in the secondary marketplace as a result of a bankruptcy
or liquidation. In these scenarios, a portion of the assets
in a process line is generally sold on a component basis
while the remaining equipment is sold to be scrapped.
Consistent with the prior issue of GA’s Paper &
Packaging Monitor, smaller, relatively portable
equipment, such as paper-consumable machinery, tends
to generate more favorable recovery values versus
larger equipment. As consumer staples, household and
sanitary paper products generally maintain steady retail
demand even in bad economic times. Smaller
equipment continues to be sold primarily
internationally.
However, if offered for sale in a liquidation setting,
asset pools consisting of late-model paper converting
equipment could draw the interest of major North
American industry participants, according to analysts.
Older machines, meanwhile, are generally of interest
only to foreign buyers. International buyers are
primarily located in Pakistan, China, and Mexico.
China is currently the largest paper and packaging
producer in the world, a status the country is likely to
maintain due to continued technological progress and a
low-cost labor force.
Larger pieces of machinery that are commonly seen in
mills throughout the U.S. are generally sold at scrap
value domestically due to their cumbersome nature.
The manufacture of pulp and paper requires multi-step
processes, and in order to facilitate the flow of these
processes, major production equipment is often
mounted throughout multiple building elevations. In
the case that such equipment must be uninstalled and
transferred, as in the case during an auction or
liquidation sale, the costs of removal and any necessary
repairs generally outweigh the value of the item itself.
However, certain components of process systems hold
individual value, such as chip sorting equipment,
refiners, screens, pumps, and pulpers.
A decline in the industry due to raw material price
increases or other factors could result in a higher level
of paper and packaging equipment liquidations and
negatively impact the recovery values of such items.
12 February 2014 — Paper & Packaging Monitor
12 Pricing Trends Paper and Packaging Reference Sheet
November
2013
December
2013
January
2014
NBHK Mixed Species - Canada/U.S. Sources, Delivered to U.S. East ($560
to $575/ton) (2%) 1% 2%
SBHK Mixed Species - U.S. Sources, Delivered to U.S. East ($560 to $575/
ton) (2%) 1% 2%
NBSK - Canadian Sources, Delivered to U.S. East ($610 to $685/ton) 5% 1% 2%
SBSK - U.S. Sources, Delivered to U.S. East ($610 to $625/ton) 2% 0% 1%
November
2013
December
2013
January
2014
Newsprint 30lb (48.8g) - U.S. East ($550/ton) 0% 0% 0%
Newsprint 27.7lb (45g) - U.S. East ($585/ton) 0% 0% 0%
Newsprint 27.7lb (45g) - U.S. West ($550/ton) 0% 0% 0%
Newsprint 30lb (48.8g) - U.S. West ($585/ton) 0% 0% 0%
November
2013
December
2013
January
2014
50lb (70g) Offset Rolls - U.S. East ($870/ton) 2% 0% 2%
20lb (80g) Repro Bond 92 Bright Cutsize Sheets - U.S. East ($1,010 /ton) 0% 0% 2%
24lb White Wove Envelope - 92 Bright - Rolls - U.S. East ($980/ton) 1% 0% 4%
PPI Average Pulp Spot Prices ($ per Ton) - % change from previous month
PPI Newsprint Paper Market Prices ($ per Ton) - % change from previous month
PPI Average Uncoated Paper Market Prices ($ per Ton) - % change from previous month
PPI Average Paperboard and Containerboard Market Prices ($ per Ton) - % change from previous month
November
2013
December
2013
January
2014
Unbleached Kraft Linerboard - 42lb - U.S. East (Transaction Price) ($740/
ton) 0% 0% 0%
SBS - 16pt Folding Carton - C1S - U.S. East (Transaction Price) ($1,155/ton) 0% 0% 0%
Recycled Folding Boxboard - 20pt - CRB - Clay coated news - U.S. East
(Transaction Price) ($955/ton) 0% 0% 0%
Recycled Folding Boxboard - 20pt - URB - Uncoated Bending Chip - U.S
East. (Transaction Price) ($690/ton) 0% 0% 0%
13 February 2014 — Paper & Packaging Monitor
13 Pricing Trends Experience
GA was involved in the liquidations of assets for paper and packaging companies, including the following trans-
actions:
Printcrafters, Inc.: Formerly a commercial printing company with a large paper inventory in various sizes
and styles.
Colfax Envelope Corporation: Formerly a manufacturer and distributor of high-quality custom litho-
graphed/offset envelopes for financial services and direct mail companies.
Solar Graphics, Inc.: A printer and supplier of graphic signs including banners, window display films, and
screen-printed products.
WWF Paper: Formerly a manufacturer and distributor of printing and writing papers, with more than 100
U.S. and international paper mills.
Tye-Sil: Formerly a leading Canadian provider of gift wrap and accessories.
Royal Plastics: A manufacturer of a variety of custom plastic products.
Kemco Plastics, Inc.: A manufacturer of custom-molded plastic products, serving the packaging industry in
addition to the military, aerospace, consumer goods, medical, furniture, automotive, and industrial sectors.
Others including Usdan Paper Company, Pandick Press, Target Graphics, Unicover Corp., Wicklander
Printing Corp., Office Max, and MMP Printing Group.
In addition, GA has worked with and appraised numerous manufacturers and distributors within the paper and
packaging industries. While our clients remain confidential, they range in scale from smaller, more specialized
regional businesses to major global and national industry leaders, and include the following sampling of compa-
nies:
Leading manufacturers and regional distributors of premium, writing, text, cover, and specialty papers in a
variety of colors, weights and finishes; durable, saturated, and coated base papers for a variety of applica-
tions; pulp; and other wood-based products, including a global forest products company with annual sales
over $3 billion.
Manufacturers, distributors, and brokers of book publication papers, coated and uncoated freesheet, super-
calendared and coated groundwood papers, newsprint, and other fine paper purchased by U.S. book, maga-
zine, and advertising publishers, including companies with more than $400 million in sales.
Distributors and printers of sheet-fed paper products such as pressure-sensitive paper and film used in a va-
riety of applications, including inserts, magazines, direct mail, and other print mediums, such as a major
North American commercial printer with annual revenues in excess of $3 billion.
A leading U.S. manufacturer of printed and unprinted envelopes in various sizes and styles for the merchant/
wholesale market, large envelope consumers, and specialty wholesalers, with annual sales over $500 million.
Manufacturers and distributors of corrugated containers, containerboard, retail packaging, and packaging
products such as point-of-purchase displays, protective packaging materials, and pressure-sensitive labels for
a variety of industries, including a global company with annual sales exceeding $5 billion.
Manufacturers of flexible packaging products such as specialty bags, sheets, wraps, wrappers, sleeves, and
other packaging products for snack food and candy manufacturers, quick-service restaurants, food-service
companies, and grocery stores, including manufacturers with annual sales greater than $300 million.
In addition to our vast liquidation and appraisal experience, GA maintains contacts within the paper and packaging
industry that we utilize for insight and perspective on recovery values.
14 February 2014 — Paper & Packaging Monitor
14 Pricing Trends Monitor Information
The Paper & Packaging Monitor relates information covering paper and packaging products,
including industry trends, market pricing, and their relation to the valuation process. GA
provides our customer base with a concise document highlighting the paper and packaging
industry. Due to the commodity nature of certain paper and packaging products, timely
reporting is necessary to understand an ever-changing marketplace. GA strives to
contextualize important indicators in order to provide a more in-depth perspective of the
market as a whole.
GA internally tracks recovery ranges for pulp, paper, and packaging, but we are mindful to
adhere to your request for a simple reference document. GA welcomes the opportunity to
make our expertise available to you in every possible way. Should you need any further
information or wish to discuss recovery ranges for a particular segment, please feel free to
contact your GA Business Development Officer using the contact information shown in this
and all Paper & Packaging Monitor issues.
GA’s Paper & Packaging Monitor provides market value and industry trend information for
a variety of paper and packaging products. The information contained herein is based on a
composite of GA’s industry expertise, contact with industry personnel, liquidation and
appraisal experience, and data compiled from a variety of well-respected sources believed
to be reliable. We do not guarantee the completeness of such information or make any
representation as to its accuracy.
15 February 2014 — Paper & Packaging Monitor
15 Pricing Trends Appraisal & Valuation Team
Ken Bloore
Chief Operating Officer
818-884-3737
About Great American Group
Great American Group is a leading provider of asset disposition solutions and valuation and appraisal services to
a wide range of retail, wholesale, and industrial clients, as well as lenders, capital providers, private equity
investors, and professional services firms. In addition to the Paper & Packaging Monitor, GA also provides clients
with industry expertise in the form of monitors for the chemicals and plastics, metals, food, and building products
sectors, among many others. GA offers the European Manufacturing Monitor via its subsidiary, GA Europe
Valuations Limited.
Headquarters
21860 Burbank Blvd. Suite 300 South
Woodland Hills, CA 91367 800-45-GREAT www.greatamerican.com
Mike Marchlik
National Sales & Marketing Director
(818) 746-9306
David Seiden
Executive Vice President, Southeast Region
(770) 551-8114
Ryan Mulcunry
Executive Vice President - Northeast Region,
Canada & Europe
Bill Soncini
Senior Vice President, Midwest Region
(312) 777-7945
Drew Jakubek
Managing Director, Southwest Region
(972) 265-7981
Jennie Kim
Vice President, Western Region
(818) 746-9370
Gordon Titley
Director of Valuations, GA Europe Valuations
+44 2073180574
Marc Musitano
Chief Operating Officer
818-884-3737
Michael Petruski
Executive Vice President, General Manager
818-884-3737
Michael Adair
Senior Associate
972-996-5633
