Rising earnings of catalogues producers are stimulating new campaigns. This year is shaping up to be a good one for printing and publishing. Total production settled at 13.3 million tons. Shipments for the last two months of 1996 rose sharply for both coated groundwood and coated freesheet. In the second quarter 1997, prices are firming.
Mills seem to have slowed production enough to draw down inventories, which firms prices.
Additional downtime this summer is likely to insure against a weak economy blowing out prices. If the economy strengthens and operating rates jump, prices will rise sharply into 1998. Like 1996, the participation by Christmas cataloguers will direct the market. Another factor in the market is the sale of Repap's mills. Repap is trying to forge a merger between fellow Canadians Domtar and Avenor, following a rejected bid by Avenor shareholders for the whole company.