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PAGE Newsprint UpdateOctober 6, 2017

The PAGE Newsprint Committee met on October 4-5 with representatives from RISI, Cox, RFP, Tembec, Kruger, White Birch, Catalyst and NORPAC. The information coming out of that meeting is something less than positive for our membership and our industry:

1. The $30/MT October 1 increase will be fully implemented.

2. With almost a million tonnes taken out of N. Am market in the past year the market has become temporarily tight and normal lead times should be increased by at least two weeks for standard newsprint and possibly longer for specialty grades.

3. Compounding the tightness and creating more delivery issues is a trucking crisis due to changing laws and the weather-caused increases in demand. There is no supplier exempt from delivery problems.

4. It would not be surprising that a second increase of approximately $25/MT be announced in the next 2-5 months.

5. Most importantly, the petition filed by NORPAC for countervailing duties and dumping vs. the Canadian newsprint mills is a very big deal. It was the unanimous opinion by the various suppliers that the ITC and DOC could impose some degree of duty. The initial three targets for the investigation included RFP, Catalyst and Kruger although other companies can voluntarily asked to be investigated (The ITC does not have to accept those request). Each of the targets can be assessed a separate duty amount while all other Canadian suppliers would be subject to the average of the assessed duties. The cost of any imposed duties along with the millions in legal fees would be almost certain to further increase the cost of Canadian newsprint and specialty grades. It could also result in the Canadian companies shifting more of their tonnes to international markets not imposing any duties. We don’t know at this point if it will help, but we still recommend that you contact your federal and state officials and let them know of the negative impact of any duty.

6. PAGE/Cox are looking into alternative sources of supply including international options.

7. The 2018 Newsprint Commitment Survey has been mailed to all members (A blank copy is also available on the PAGE web site: www.PAGECooperative.com).

8. If you have any questions you can contact John Snyder (1-800-468-9568, ext. 176; john.snyder@pagecooperative.com) Joan Graff (ext. 196; joan.graff@pagecooperative.com) Steve Schroeder (ext. 187, steve@pagecooperative.com) or Marcy Emory (ext. 182; marcy.emory @pagecooperative.com).

FYI:
“Under the Tariff Act of 1930, U.S. industries may petition the government for relief from imports that are sold in the United States at less than fair value ("dumped") or which benefit from subsidies provided through foreign government programs. Under the law, the U.S. Department of Commerce determines whether the dumping or subsidizing exists and, if so, the margin of dumping or amount of the subsidy; the USITC determines whether there is material injury or threat of material injury to the domestic industry by reason of the dumped or subsidized imports. For industries not yet established, the USITC may also be asked to determine whether the establishment of an industry is being materially retarded by reason of the dumped or subsidized imports.
Antidumping and countervailing duty investigations are conducted under title VII of the law. The USITC conducts the injury investigations in preliminary and final phases.”
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