outlook for paper november 8, 2005 book manufacturers’ institute, inc. annual conference
TRANSCRIPT
-
Outlook for Paper
November 8, 2005 BOOK MANUFACTURERS INSTITUTE, INC. ANNUAL CONFERENCE
-
AgendaPaper market update
Brightness issue
Environmental issues facing publishers & paper manufacturers
Questions & answers
-
U.S. 2004 Printing & Writing Shipments By End UseSource: AF&PATotal Shipments 23,591,322 Tons
-
North American Demand by Grade(Printing & Writing Segments) (000 tons)Source: RISI/Paperloop
20052006Uncoated Freesheet% Change14,28414,2880%Uncoated Groundwood% Change6,9136,9591%Coated Freesheet% Change6,0956,1541%Coated Groundwood% Change6,5806,5800%
-
Key Paper Statistics(North America)Source: PPPC-4% Change YTD+1% Change
NA Line Chart
221822542273
207722212168
231424342469
218923162232
216423052211
218124082328
230924182293
23172435Aug
23422411Sep
24292396Oct
21222269Nov
21812250Dec
&A
Page &P
Source: PPPC
'000 tonnes
2003
2004
2005
NORTH AMERICAN PRINTING & WRITING SHIPMENTS
CFS Line Chart
345345339
323323342
355359390
318359322
317385325
337391379
344373374
359397Aug
378391Sep
375367Oct
317338Nov
336352Dec
&A
Page &P
Source: PPPC
'000 tonnes
2003
2004
2005
N.A. COATED FREE SHEET SHIPMENTS
UFS Line Chart
1074
980
1106
1058
1036
1040
1090
1061
1060
1111
938
1012
1062
1071
1160
1075
1028
1081
1086
1084
1029
1061
992
987
1040
991
1139
1036
1007
1025
1015
&A
Page &P
'000 tonnes
2003
N.A. UNCOATED FREE SHEET SHIPMENTS
-------------
N.A. - Chart
86%
86%
N.A. - Chart
2304
2293
11
Jul
Production vs. Shipments
UFS - Chart
2557
2548
2504
2502
2539
2505
2473
2380
2258
2191
2270
2366
2455
2475
2538
2585
2707
2742
2759
2703
2583
2468
2521
2492
2518
2465
2362
2347
2301
2220
2255
2243
2221
2246
2293
2355
2427
2500
2427
2564
2646
2618
2626
&A
Page &P
Inventories
YTD Inventories
CFS - Chart
0.850.88203125
0.890.886109762
0.890.8727488987
0.910.9091914705
0.850.8648916551
0.90.8958866545
0.920.9074349125
0.940.9050413223
0.950.9011382799
0.960.9347163695
0.90.9312694878
0.860.898266055
0.870.9045175834
0.90.909099663
0.90.9291702679
0.880.8988944724
0.840.8873567468
0.880.8941219624
0.90.9066262451
0.90.8782477341
0.940.8954483348
0.940.8927871552
0.860.8822902922
0.860.848959193
0.870.8769476486
0.920.8951463305
0.930.8910271159
0.920.9140414508
0.880.8738915401
0.950.9042358804
0.90.9130272953
0.920.9079096509
0.940.9294732476
0.910.9194949917
0.890.9178492728
0.860.8844622222
0.860.9050241971
0.90.9224169742
0.930.9070230863
0.870.9128763441
0.840.8707734057
0.90.8826030928
0.860.8641255997
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW - Chart
84%
85%
UGW - Chart
1033
1015
18
Jul
Production vs. Shipments
CGW - Chart
1515630
1471620
1422620
1404660
1401670
1379700
1382690
1336680
1287690
1258700
1316680
1372670
1421660
1436655
1446655
1444645
1466635
1456630
1435610
1403600
1399600
1350590
1379590
1364580
1365580
1307580
1219620
1198620
1152660
1152700
1189730
1186730
1209780
1240780
1291780
1334780
1351770
1377740
1294740
1336770
1341740
1353730
1371720
&A
Page &P
$/Ton
Inventories
UFS (50lb) $/Ton
YTD Inventories
----
0.90.9193820225
0.930.889039039
0.940.8981850534
0.940.92440553
0.880.8774928775
0.90.8800769971
0.910.9133486661
0.940.9003766816
0.940.8984147465
0.930.9055927602
0.860.9095151515
0.860.9072620216
0.890.9306052142
0.90.9137755102
0.910.9338607595
0.90.8991493384
0.860.8774324324
0.890.8814423077
0.90.8826605505
0.880.8534590009
0.910.91
0.920.8802520252
0.80.8332622601
0.840.8217391304
0.870.8724576271
0.950.8905695612
0.960.888
0.920.9028837209
0.850.8359435798
0.930.8981683626
0.890.912946593
0.90.8867158672
0.880.9005247813
0.880.9057115928
0.850.9039818548
0.820.854893617
0.870.9051346154
0.910.9219374369
0.950.8816066725
0.890.9054633205
0.840.8425024826
0.880.8765658537
0.840.8548965517
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW - Chart (Bk)
85%
78%
UGW - Chart (Bk)
342
374
-32
Jul
Production vs. Shipments
UGW - Pie
658760
675755
666745
661735
679725
676725
650725
606725
541725
515765
572765
584765
601800
624810
662805
678785
727780
764775
777775
758770
685765
674760
708755
701755
712750
707745
687745
679745
667745
618755
622805
605815
598880
608870
631870
657870
680870
707870
720900
781930
798900
786900
755890
&A
Page &P
Inventories
CFS (60lb #3) $/Ton
YTD Inventories
---data---
0.840.8993220339
0.860.90443769
0.860.8387362637
0.880.8677094972
0.820.8625360231
0.870.8626062323
0.910.8463471503
0.950.8455
0.970.8107828283
0.980.9728640777
0.880.9734078212
0.870.9572357724
0.840.8813913043
0.880.9426625387
0.880.9469295775
0.810.850754717
0.780.8981072555
0.860.954421365
0.850.882122093
0.890.8453760446
0.940.755978836
0.910.8396266667
0.810.866214511
0.820.8370833333
0.820.8152463768
0.840.8243962848
0.880.8309749304
0.910.8922562674
0.940.9107012987
0.990.8659335038
0.910.9197587131
0.970.9284634761
0.990.9748081841
0.90.9245231608
0.850.9204142012
0.860.9235227273
0.80.9132743363
0.870.9310526316
0.890.9196666667
0.760.892173913
0.740.7787076923
0.890.8618205805
0.850.7772727273
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
TOTAL N.A.
93%
96%
$/Ton
TOTAL N.A.
502
488
14
Jul
Production vs. Shipments
UFS
207
220
237
244
250
233
233
249
244
212
208
221
245
218
220
233
250
251
259
252
241
215
210
200
215
227
230
231
245
252
232
257
240
288
208
207
240
252
235
248
269
260
274
&A
Page &P
Inventories
YTD Inventories
CFS
0.810.866953125
0.890.9200519481
0.870.9055528846
0.890.9051581509
0.860.8747911548
0.930.890962963
0.890.8878959811
0.90.934537246
0.950.9393736018
1.010.9461020408
0.960.9495878525
0.840.8678571429
0.80.8485488127
0.920.8571139241
0.860.8640186916
0.890.9188425926
0.850.8841607565
0.880.88
0.910.9260352423
0.930.9135761589
0.930.9070627803
0.980.928
0.950.9308295964
0.860.8410294118
0.850.8772839506
0.880.9084577114
0.90.9076595745
0.920.922021978
0.860.8871783296
0.90.913876652
0.920.9162977867
0.870.8936610879
0.980.928030303
0.960.9372781065
0.960.9328484848
0.940.9458506224
0.90.9548319328
0.940.9607505519
0.990.9805714286
0.970.9950695825
0.930.9706875
0.950.9324795082
0.930.9566803279
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW
85%
87%
UGW
427
416
11
Jul
Production vs. Shipments
CGW
184
188
187
199
214
217
208
189
185
205
182
189
187
197
211
230
264
271
288
291
258
229
224
227
225
224
227
239
237
199
206
195
173
170
163
157
157
164
178
200
239
218
226
&A
Page &P
Inventories
YTD Inventories
Line Charts
0.790.815483871
0.820.8293982808
0.780.7757837838
0.850.8761538462
0.80.832
0.880.8866
0.950.9329977629
0.980.9440172786
0.970.9634311512
0.980.9757483731
0.960.9446224256
0.850.8267412935
0.920.9156190476
0.920.9442744063
0.930.9694811321
0.870.9157894737
0.840.9134190231
0.880.8956743003
0.910.9468333333
0.960.9643243243
1.030.969279476
0.980.9388053097
0.950.9522511848
0.930.9190588235
0.920.9283257919
0.950.9477699531
0.930.9341797753
0.920.945915493
0.930.9279287305
1.030.9468322981
0.920.9407207207
0.990.9671218487
0.990.9515948276
0.960.951670282
0.950.9350561798
0.890.8754778555
0.860.8579425837
0.870.8859424084
0.850.876626506
0.790.8367204301
0.820.89995
0.930.8853089245
0.850.8724759615
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
-----
UGW-Level 1
Yr/Yr Comparison
High-Bright9%12%
GLT Book20%3%
UGW-Level 1
342420
386434
109.436112.705
2004
2005
Shipments - YTD(July)
5854
5459
15.65818.811
2004
2005
Shipments - Yr/Yr(July)
364714.401
445016.299
496018.362
576013.445
476114.255
515417.016
585415.658
525216.041
495718.319
495115.062
545213.21
474913.456
535713.953
575715.451
676416.11
736414.087
577115.732
596218.561
545918.811
&A
Page &P
Super-Bright
High-Bright
GLT BOOK
Shipments Trends
Basis WtBrightnessSmoothness
Super-Bright>27#>74Super Calendar
High-Bright>27#64< x27#
-
Key Paper Statistics Continued
Chart3
1515630
1471620
1422620
1404660
1401670
1379700
1382690
1336680
1287690
1258700
1316680
1372670
1421660
1436655
1446655
1444645
1466635
1456630
1435610
1403600
1399600
1350590
1379590
1364580
1365580
1307580
1219620
1198620
1152660
1152700
1189730
1186730
1209780
1240780
1291780
1334780
1351770
1377740
1294740
1336770
1341740
1353730
1371720
$/Ton
Inventories
UFS (50lb) $/Ton
YTD Inventories
NA Line Chart
221822542273
207722212168
231424342469
218923162232
216423052211
218124082328
230924182293
23172435Aug
23422411Sep
24292396Oct
21222269Nov
21812250Dec
&A
Page &P
Source: PPPC
'000 tonnes
2003
2004
2005
NORTH AMERICAN PRINTING & WRITING SHIPMENTS
CFS Line Chart
345345339
323323342
355359390
318359322
317385325
337391379
344373374
359397Aug
378391Sep
375367Oct
317338Nov
336352Dec
&A
Page &P
Source: PPPC
'000 tonnes
2003
2004
2005
N.A. COATED FREE SHEET SHIPMENTS
UFS Line Chart
1074
980
1106
1058
1036
1040
1090
1061
1060
1111
938
1012
1062
1071
1160
1075
1028
1081
1086
1084
1029
1061
992
987
1040
991
1139
1036
1007
1025
1015
&A
Page &P
Source: PPPC
'000 tonnes
2003
N.A. UNCOATED FREE SHEET SHIPMENTS
-------------
N.A. - Chart
86%
86%
N.A. - Chart
2304
2293
11
Jul
Production vs. Shipments
UFS - Chart
2557
2548
2504
2502
2539
2505
2473
2380
2258
2191
2270
2366
2455
2475
2538
2585
2707
2742
2759
2703
2583
2468
2521
2492
2518
2465
2362
2347
2301
2220
2255
2243
2221
2246
2293
2355
2427
2500
2427
2564
2646
2618
2626
&A
Page &P
Inventories
YTD Inventories
CFS - Chart
0.850.88203125
0.890.886109762
0.890.8727488987
0.910.9091914705
0.850.8648916551
0.90.8958866545
0.920.9074349125
0.940.9050413223
0.950.9011382799
0.960.9347163695
0.90.9312694878
0.860.898266055
0.870.9045175834
0.90.909099663
0.90.9291702679
0.880.8988944724
0.840.8873567468
0.880.8941219624
0.90.9066262451
0.90.8782477341
0.940.8954483348
0.940.8927871552
0.860.8822902922
0.860.848959193
0.870.8769476486
0.920.8951463305
0.930.8910271159
0.920.9140414508
0.880.8738915401
0.950.9042358804
0.90.9130272953
0.920.9079096509
0.940.9294732476
0.910.9194949917
0.890.9178492728
0.860.8844622222
0.860.9050241971
0.90.9224169742
0.930.9070230863
0.870.9128763441
0.840.8707734057
0.90.8826030928
0.860.8641255997
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW - Chart
84%
85%
UGW - Chart
1033
1015
18
Jul
Production vs. Shipments
CGW - Chart
1515630
1471620
1422620
1404660
1401670
1379700
1382690
1336680
1287690
1258700
1316680
1372670
1421660
1436655
1446655
1444645
1466635
1456630
1435610
1403600
1399600
1350590
1379590
1364580
1365580
1307580
1219620
1198620
1152660
1152700
1189730
1186730
1209780
1240780
1291780
1334780
1351770
1377740
1294740
1336770
1341740
1353730
1371720
&A
Page &P
$/Ton
Inventories
UFS (50lb) $/Ton
YTD Inventories
----
0.90.9193820225
0.930.889039039
0.940.8981850534
0.940.92440553
0.880.8774928775
0.90.8800769971
0.910.9133486661
0.940.9003766816
0.940.8984147465
0.930.9055927602
0.860.9095151515
0.860.9072620216
0.890.9306052142
0.90.9137755102
0.910.9338607595
0.90.8991493384
0.860.8774324324
0.890.8814423077
0.90.8826605505
0.880.8534590009
0.910.91
0.920.8802520252
0.80.8332622601
0.840.8217391304
0.870.8724576271
0.950.8905695612
0.960.888
0.920.9028837209
0.850.8359435798
0.930.8981683626
0.890.912946593
0.90.8867158672
0.880.9005247813
0.880.9057115928
0.850.9039818548
0.820.854893617
0.870.9051346154
0.910.9219374369
0.950.8816066725
0.890.9054633205
0.840.8425024826
0.880.8765658537
0.840.8548965517
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW - Chart (Bk)
85%
78%
UGW - Chart (Bk)
342
374
-32
Jul
Production vs. Shipments
UGW - Pie
658760
675755
666745
661735
679725
676725
650725
606725
541725
515765
572765
584765
601800
624810
662805
678785
727780
764775
777775
758770
685765
674760
708755
701755
712750
707745
687745
679745
667745
618755
622805
605815
598880
608870
631870
657870
680870
707870
720900
781930
798900
786900
755890
&A
Page &P
Inventories
CFS (60lb #3) $/Ton
YTD Inventories
---data---
0.840.8993220339
0.860.90443769
0.860.8387362637
0.880.8677094972
0.820.8625360231
0.870.8626062323
0.910.8463471503
0.950.8455
0.970.8107828283
0.980.9728640777
0.880.9734078212
0.870.9572357724
0.840.8813913043
0.880.9426625387
0.880.9469295775
0.810.850754717
0.780.8981072555
0.860.954421365
0.850.882122093
0.890.8453760446
0.940.755978836
0.910.8396266667
0.810.866214511
0.820.8370833333
0.820.8152463768
0.840.8243962848
0.880.8309749304
0.910.8922562674
0.940.9107012987
0.990.8659335038
0.910.9197587131
0.970.9284634761
0.990.9748081841
0.90.9245231608
0.850.9204142012
0.860.9235227273
0.80.9132743363
0.870.9310526316
0.890.9196666667
0.760.892173913
0.740.7787076923
0.890.8618205805
0.850.7772727273
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
TOTAL N.A.
93%
96%
$/Ton
TOTAL N.A.
502
488
14
Jul
Production vs. Shipments
UFS
207
220
237
244
250
233
233
249
244
212
208
221
245
218
220
233
250
251
259
252
241
215
210
200
215
227
230
231
245
252
232
257
240
288
208
207
240
252
235
248
269
260
274
&A
Page &P
Inventories
YTD Inventories
CFS
0.810.866953125
0.890.9200519481
0.870.9055528846
0.890.9051581509
0.860.8747911548
0.930.890962963
0.890.8878959811
0.90.934537246
0.950.9393736018
1.010.9461020408
0.960.9495878525
0.840.8678571429
0.80.8485488127
0.920.8571139241
0.860.8640186916
0.890.9188425926
0.850.8841607565
0.880.88
0.910.9260352423
0.930.9135761589
0.930.9070627803
0.980.928
0.950.9308295964
0.860.8410294118
0.850.8772839506
0.880.9084577114
0.90.9076595745
0.920.922021978
0.860.8871783296
0.90.913876652
0.920.9162977867
0.870.8936610879
0.980.928030303
0.960.9372781065
0.960.9328484848
0.940.9458506224
0.90.9548319328
0.940.9607505519
0.990.9805714286
0.970.9950695825
0.930.9706875
0.950.9324795082
0.930.9566803279
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
UGW
85%
87%
UGW
427
416
11
Jul
Production vs. Shipments
CGW
184
188
187
199
214
217
208
189
185
205
182
189
187
197
211
230
264
271
288
291
258
229
224
227
225
224
227
239
237
199
206
195
173
170
163
157
157
164
178
200
239
218
226
&A
Page &P
Inventories
YTD Inventories
Line Charts
0.790.815483871
0.820.8293982808
0.780.7757837838
0.850.8761538462
0.80.832
0.880.8866
0.950.9329977629
0.980.9440172786
0.970.9634311512
0.980.9757483731
0.960.9446224256
0.850.8267412935
0.920.9156190476
0.920.9442744063
0.930.9694811321
0.870.9157894737
0.840.9134190231
0.880.8956743003
0.910.9468333333
0.960.9643243243
1.030.969279476
0.980.9388053097
0.950.9522511848
0.930.9190588235
0.920.9283257919
0.950.9477699531
0.930.9341797753
0.920.945915493
0.930.9279287305
1.030.9468322981
0.920.9407207207
0.990.9671218487
0.990.9515948276
0.960.951670282
0.950.9350561798
0.890.8754778555
0.860.8579425837
0.870.8859424084
0.850.876626506
0.790.8367204301
0.820.89995
0.930.8853089245
0.850.8724759615
&A
Page &P
Ship/Capacity
Prod/Capacity
Operating Rates
-----
UGW-Level 1
Yr/Yr Comparison
High-Bright9%12%
GLT Book20%3%
UGW-Level 1
342420
386434
109.436112.705
2004
2005
Shipments - YTD(July)
5854
5459
15.65818.811
2004
2005
Shipments - Yr/Yr(July)
364714.401
445016.299
496018.362
576013.445
476114.255
515417.016
585415.658
525216.041
495718.319
495115.062
545213.21
474913.456
535713.953
575715.451
676416.11
736414.087
577115.732
596218.561
545918.811
&A
Page &P
Super-Bright
High-Bright
GLT BOOK
Shipments Trends
Basis WtBrightnessSmoothness
Super-Bright>27#>74Super Calendar
High-Bright>27#64< x27#
-
Current State of the BusinessDeclining Demand trendIncreasing cost over timeGlobal over capacityInability to influence price due to grade/technology substitution
Lack of profitability within the paper industry has been a mandate for change*Estimate*May 05 Estimate
*
Average Profitability for U.S. Printing and Writing Paper Mills
Profitability defined as (price-cost)/cost. Costs are total costs including depreciation, interest, SG&A, and delivery
-
Industry SegmentationLargeProducersSmallProducersCommodity productsGlobal focusMass marketsSlow responseInternally focusedManufacturing-centric
Limited capabilitiesSmall, high-cost millsRegional focusFinancially unstableLimited product rangeGlatfelterHigh-value, niche marketsCustomer-centricGlobal focusRelentless cost reductionFinancially strong
Glatfelters unique focus offers the Company the best of both worlds.
-
What Factors Influence Paper Prices?Economic Growth Paper consumption follows GDP growth. Rising economic growth stimulates increasing demand for paper.
Exchange Rates Import/Export balance. As US $ strengthens, it becomes easier to export paper to U.S.
Capacity utilization Operating rates above 91-92% utilization signals price increase. Capacity changes relative to demand changes drive utilization rates.
Substitute products / technologies High-Bright groundwoods have penetrated freesheet markets. Mail volume, office repro volume being impacted by internet
-
06 OutlookFactorTrend Price Impact
DemandU.S. GDP growth is decelerating2005 20063.6% 3.3%Rising CostsEnergy, Fuel, Chemicals increasingPostal Rate HikeFirst class + 4%Fewer mail piecesLower catalog circulationLost share to substitute technology/internetElectric bill payment, e-mailCapacity ChangesExcess capacity is being shut down638M Tons permanently shut in 05
-
The Brightness IssueCommodity white papers are moving from 84 92 brightness, beginning in Sept. 05
Why? Competition on a global scale Quality distinction Vs Groundwood
-
Impact on Paper BuyersOne choice from commodity producers (illustrates the commodity segment focus)
Opaque markets will be affectedSubstitute 92 offset for 94 opaqueNew opaque level - 96
-
Glatfelter Response to Brightness InitiativeFocus on customer choice
Input from book publishing customers indicating a preference for current brightness levels
Thor plus 92
Thor 84
* Demand will determine availability
-
Future ImpactInventory management
Cost implications of manufacturing brighter paper
Quality of recovered fiber as input to recycled paper is unknown
Color consistency in cream papers
-
Environmental Issues Facing Publishers and Paper ManufacturersGrowing interest among large consumers toward environmental leadership
Large consumers seeking suppliers with similar environmental philosophies
An increasing preference for certified paper products
Environmentalist pressure is succeeding
Most environmental education comes from activist groups
Environmental issues will become more important
-
Keystone Issues Of Environmentally Preferable PaperReduced consumption
Restricted fiber sourcingNo old growth / endangered forestsNo U.S. Public landsNo conversion to plantationsNo GMOsNo pesticides, herbicides, fertilizersIncreased recycled content (emphasis on PCW)
Clean production (emphasis on TCF)
Forestry practices certified (to FSC standards)
-
US Recovered Paper Life Cycle2003 Data (000s Tons)Recovered Paper 49,253Total Supply of Fiber 98,011Source: AF&PA 2004 U.S. Recovered Paper Statistical HighlightsSources of Recovered FiberUses of Recovered FiberEnd Uses of Recovered Fiber Consumed at Paper MillsConsumed at Paper & Board Mills 33,650Export 13,80549%19%20%7%5%Other 2,200 Imports 399TissuePrinting & WritingRecycled PaperboardContainerboardNewsprint12%25%47%5%10%1% (pkg)
Sheet2
s
LandFill Chart
33.936.3
35.438.4
39.738.1
42.236.1
43.134.3
4437.2
4538.4
46.841.2
47.339.5
4735.8
47.637.5
49.337.7
Million Tons
CAGR 99-03: +2%
CAGR 99-03: -2%
Recovered Paper
Paper To Landfill
More paper is recovered for recycling than is landfilled
Recovered Stats
4925348758
Recovered Paper
Not Recovered
Recovered Paper49,253
Total Supply 98,011
Sources of Fiber
TotalTotalTotalTotalTotalTotalTotalTotal49253
2400020009400200097002000340020002700
49,253
Old Corrugated
Filler 1
Old News Papers
Filler 2
Mixed Paper
Filler 3
High Grade De-Inked
Filler 4
Pulp Substitutes
TOTAL RECOVERED FIBER
Old Corrugated
Old News Papers
Mixed Paper
High Grade De-Inked
Pulp Substitutes
Data
LANDFILL ISSUE
Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03
Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%
Paper To Landfill36.338.438.136.134.337.238.441.239.535.837.537.7-2.2%-8%
RECOVERED PAPER STATSRecovered PaperNot RecoveredTotal Supply
200349,25348,75898,011
50.3%
Sources of FiberFiller 0Old CorrugatedFiller 1Old News PapersFiller 2Mixed PaperFiller 3High Grade De-InkedFiller 4Pulp Substitutes
Total49253
Sources50002400020009400200097002000340020002700
Sheet2
s
LandFill Chart
33.936.3
35.438.4
39.738.1
42.236.1
43.134.3
4437.2
4538.4
46.841.2
47.339.5
4735.8
47.637.5
49.337.7
Million Tons
CAGR 99-03: +2%
CAGR 99-03: -2%
Recovered Paper
Paper To Landfill
More paper is recovered for recycling than is landfilled
Recovered Stats
4925348758
Recovered Paper
Not Recovered
Recovered Paper49,253
Total Supply 98,011
Sources of Fiber
TotalTotalTotalTotalTotalTotalTotalTotal49253
2400020009400200097002000340020002700
24,000
9,400
9,700
3,400
2,700
49,253
Old Corrugated
Filler 1
Old News Papers
Filler 2
Mixed Paper
Filler 3
High Grade De-Inked
Filler 4
Pulp Substitutes
Old Corrugated
TOTAL RECOVERED FIBER
Old News Papers
Mixed Paper
High Grade De-Inked
Pulp Substitutes
uses of recovered fiber 2003 da
49255TotalTotalTotalTotalTotalTotalTotal
336505000138052000220020003992000
(000 tons)37% of all fiber consumed by U.S. Paper industry comes from recovered fiber.
49,255
Consumed at Paper and Board Mills
Filler 0
Export
Filler 1
Other
Filler 2
Imports
Filler 3
consumed of us paperboard mills
TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal33650
500017892000406120008321200015732200041720003330
Filler 0
Printing & writing
Filler 1
Tissue
Filler 2
Recycled Paperboard
Filler 3
Containerboard
Filler 4
Packaging
Filler 5
Newsprint
P&W Paper Recovery
12210TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal31016
Sources50001340200024020002650200022502000100020004730
Recovered
Filler 0
P&W 11%
Filler 1
Newsprint
Filler 2
Tissue
Filler 3
Paperboard
Filler 4
Other
Filler 5
Exports
Printing & Writing Papers Recovery
paper industry
49255TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal98011
Sources33650500013805200022002000399SourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSources
End productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd products200010000.820004000.220007000.920001500.5200010000.520003000.5
Recovered
Consumed
filler 10
export
filler 11
other
filler 12
imports
Filler 0
P&W
Filler 1
Tissue
Filler 2
Paperboard
Filler 3
Containerboard
Filler 4
Packaging
Filler 5
Newsprint
Data
LANDFILL ISSUE
Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03
Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%
Paper To Landfill36.338.438.136.134.337.238.441.239.535.837.537.7-2.2%-8%
RECOVERED PAPER STATSRecovered PaperNot RecoveredTotal Supply
200349,25348,75898,011
50.3%
Sources of FiberFiller 0Old CorrugatedFiller 1Old News PapersFiller 2Mixed PaperFiller 3High Grade De-InkedFiller 4Pulp Substitutes
Total49253
Sources50002400020009400200097002000340020002700
Uses of Recovered Fiber 2003 dataFiller 0ImportsFiller 1OtherFiller 2ExportFiller 3Consumed at Paper and Board Mills
Total49255
Sources500039920002200200013805200033650
Uses of Recovered FiberFiller 0Printing & writingFiller 1TissueFiller 2Recycled PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint
Total33650
Sources500017892000406120008321200015732200041720003330
Printing & Writing PaperRecoveredFiller 0P&W 11%Filler 1NewsprintFiller 2TissueFiller 3PaperboardFiller 4OtherFiller 5Exports
Total1221031016
Sources50001340200024020002650200022502000100020004730
U.S. Paper IndustryRecoveredConsumedfiller 10exportfiller 11otherfiller 12importsFiller 0P&WFiller 1TissueFiller 2PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint
Total4925598011
Sources33650500013805200022002000399
End products200010000.820004000.220007000.920001500.5200010000.520003000.5
Sheet2
s
LandFill Chart
33.936.3
35.438.4
39.738.1
42.236.1
43.134.3
4437.2
4538.4
46.841.2
47.339.5
4735.8
47.637.5
49.337.7
Million Tons
CAGR 99-03: +2%
CAGR 99-03: -2%
Recovered Paper
Paper To Landfill
More paper is recovered for recycling than is landfilled
Recovered Stats
4925348758
Recovered Paper
Not Recovered
Recovered Paper49,253
Total Supply 98,011
Sources of Fiber
TotalTotalTotalTotalTotalTotalTotalTotal49253
2400020009400200097002000340020002700
24,000
9,400
9,700
3,400
2,700
49,253
Old Corrugated
Filler 1
Old News Papers
Filler 2
Mixed Paper
Filler 3
High Grade De-Inked
Filler 4
Pulp Substitutes
Old Corrugated
TOTAL RECOVERED FIBER
Old News Papers
Mixed Paper
High Grade De-Inked
Pulp Substitutes
uses of recovered fiber 2003 da
49255TotalTotalTotalTotalTotalTotalTotal
336505000138052000220020003992000
(000 tons)37% of all fiber consumed by U.S. Paper industry comes from recovered fiber.
49,255
399 Imports
2,200 Other
Export 13,805
33,650Consumed at Paper and Board Mills
Consumed at Paper and Board Mills
Filler 0
Export
Filler 1
Other
Filler 2
Imports
Filler 3
consumed of us paperboard mills
TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal33650
1000178950040615008321500157325004175003330
33,650
(000 tons)2003 Data
Filler 0
Printing & writing
Filler 1
Tissue
Filler 2
Recycled Paperboard
Filler 3
Containerboard
Filler 4
Packaging
Filler 5
Newsprint
P&W Paper Recovery
12210TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal31016
Sources50001340200024020002650200022502000100020004730
Recovered
Filler 0
P&W 11%
Filler 1
Newsprint
Filler 2
Tissue
Filler 3
Paperboard
Filler 4
Other
Filler 5
Exports
Printing & Writing Papers Recovery
paper industry
49255TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal98011
Sources33650500013805200022002000399SourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSources
End productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd products200010000.820004000.220007000.920001500.5200010000.520003000.5
Recovered
Consumed
filler 10
export
filler 11
other
filler 12
imports
Filler 0
P&W
Filler 1
Tissue
Filler 2
Paperboard
Filler 3
Containerboard
Filler 4
Packaging
Filler 5
Newsprint
Data
LANDFILL ISSUE
Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03
Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%
Paper To Landfill36.338.438.136.134.337.238.441.239.535.837.537.7-2.2%-8%
RECOVERED PAPER STATSRecovered PaperNot RecoveredTotal Supply
200349,25348,75898,011
50.3%
Sources of FiberFiller 0Old CorrugatedFiller 1Old News PapersFiller 2Mixed PaperFiller 3High Grade De-InkedFiller 4Pulp Substitutes
Total49253
Sources50002400020009400200097002000340020002700
Uses of Recovered Fiber 2003 dataFiller 0ImportsFiller 1OtherFiller 2ExportFiller 3Consumed at Paper and Board Mills
Total49255
Sources500039920002200200013805200033650
Uses of Recovered FiberFiller 0Printing & writingFiller 1TissueFiller 2Recycled PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint
Total33650
Sources1000178950040615008321500157325004175003330
Printing & Writing PaperRecoveredFiller 0P&W 11%Filler 1NewsprintFiller 2TissueFiller 3PaperboardFiller 4OtherFiller 5Exports
Total1221031016
Sources50001340200024020002650200022502000100020004730
U.S. Paper IndustryRecoveredConsumedfiller 10exportfiller 11otherfiller 12importsFiller 0P&WFiller 1TissueFiller 2PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint
Total4925598011
Sources33650500013805200022002000399
End products200010000.820004000.220007000.920001500.5200010000.520003000.5
Chart1
4925348758
Recovered paper
Total Supply
Sheet1
Total Supply
4875898011
Recovered paper
49253
Sheet1
Recovered paper
Total Supply
Sheet2
Sheet3
-
Recovered Fiber Prices(Transaction Prices, May 05)$50-60$50-60$75-80$185-195$310-340Mixed De-Inked News OCC White Ledger Envelope NBSK PulpPaper PCW Pulp(Printed) Cuts$510-560Source: ForestWeb$480-510$/Short TonContaminated Clean
Chart1
555605575185310500
Mixed Paper
De-Inked PCW Pulp
News (Printed)
OCC
White Ledger
Envelope Cuts
NBSK Pulp
Sheet1
Paper Prices
Mixed Paper55
De-Inked PCW Pulp560
News (Printed)55
OCC75
White Ledger185
Envelope Cuts310
NBSK Pulp500
Sheet1
Mixed Paper
News (Printed)
OCC
White Ledger
Envelope Cuts
NBSK Pulp
De-Inked PCW Pulp
Sheet2
Sheet3
-
Forestry Certification SystemsAddressing the Issues
Sustainable forestry initiative (SFI) 144 million acres in US & CAN
Forestry stewardship council (FSC) 23 million acres in US & CAN
Canadian standards association (CSA) 64 million acres in CAN
In U.S., SFI is most prolific, with more than 93 million acres certified. Only 8 million acres of U.S. Forestland are FSC certified
Different approaches to achieving results:GovernanceAccreditationVerificationTracking & labeling
-
The SFI program is the largest certification program in the U.S. and Canada with over 150 million acres enrolled and 129 million acres independently third party certified. Governed by 15-member Board, mandating:9 Principles13 Objectives34 Performance Measures103 Operational Indicators
3rd party certification requirement for any program participant wishing to utilize on-product labeling. Certification involves examination of procedures, forestry practices and in-the-field assessments.
As a condition of membership, every AF&PA member company must manage forests and be certified according to SFI.SFI ProgramAddressing the issues
-
EPP Costs and Availability(Estimates)AvailabilityPlentifulScarceLowHighCostPCWFSCTCFECFSFI
Chart3
0.45315050
TCF
FSC
PCW
ECF
SFI
Sheet1
TCF190.45
FSC263
PCW1.521
ECF8150
SFI10150
Sheet1
TCF
FSC
PCW
ECF
SFI
Sheet2
Sheet3
-
What Should Publishers Do?Managing the Risk
Consider ENGO impact on your organization
Do your homework: talk to suppliers & other stakeholders
Assess the importance of your organizations reputation or mission
Consider developing an environmental policy
Arm yourself with information and create a strategy that is defensible, sustainable and accountableCopyright (2005) Glatfelter
-
Glatfelters Environmental CommitmentWe plant 1.5 million trees per year (4 for every one we harvest)Since 1946 GLT has planted and donated 147 million treesFirst paper mill in North America to achieve ISO 14001 certificationEnergy self-sufficient: Co-generation power (utilize 40% biomass)Environmental partnerships MinergyNew Century Project Investment of $36.8 MillionOzone bleachingOxygen delignificationElemental Chlorine Free (ECF)
All Glatfelter-owned forest lands are 3rd party certified to SFI standards Glatfelter does not utilize fiber derived from ancient or endangered forests
-
Glatfelter Product SolutionsAll Neenah papers include recycled content
-
Question & Answer