The Markets (decorative header)The Markets
(Special to Pulp & Paper Magazine.)
The news print situation is now the livest subject among the trade and the seriousness of conditions is being brought home to publishers as never before. The mills are not as alleged by some responsible for it all. While the war is unjustly charged with many ills in the way of trade disturbances, to attribute the present state of affairs entirely to the hostilities in Europe is quite correct, so far as Canada is concerned. Hundreds of men have joined the colors leaving most of the plants short of help and owing to abnormal demand and the embargoes which prevail, abroad—all due to the war,—there is not enough of that very necessity commodity—white paper—to go around. This in brief is, the exact state of affairs. In the past Canadian mills were looking for a market for their surplus product and were glad to make contracts covering a long period of time. News print was looked upon as staple and the variation in price from year to year was small indeed. Now the manufacturers do not know which way to turn. They could sell as much again as they are marketing if they had the productive facilities but of late months they have not been able to “pile up reserves”, as the banks state, and the stocks on hand are rapidly diminishing.
The average publisher has read a great deal about this condition of affairs but as there have been so many extravagant reports in all lines prevailing during this stirring period, he did not think there was much truth in the statement. It was only when the newspaper men tried to renew contracts that he realized for the first time he was face to face with a situation such as he has never been up against. There is no use blaming it on the mills. They have done the best they could under most trying circumstances. They are running their plants to full capacity and they have not unduly taken advantage of the situation to boost prices in Canada. The increase asked is infinitesimal to what the makers can obtain for their product on the other side.
The story is going the rounds, and so far has not been denied, that one of the big new plants of Canada was approached by American interests who offered to take the whole of its output for the coming year at four and a half one cents at the mill but the proposition flattering as it was, was turned down as the firm would not under any circumstances break faith with Canadian customers. Some sixty per cent. of the large newspapers whose contracts are now being carried until the end of the year and will have to be renewed are on the anxious seat.
A special meeting of the Canadian Press Association was held in Toronto last week at which there was a large attendance. The situation was thoroughly gone into. The statement was made that the output in Canada is now some eighteen hundred tons a day, yet only one sixth is consumed in the Dominion, the bulk of the product being exported to the United States. A deputation was sent to Ottawa to interview the Minister of Finance, Sir Thomas White. There representatives of the pulp and paper interest were also assembled and the whole situation was gone thoroughly into. The result was that an offer was made by the news print makers of three cents, f.o.b. mill. This applies to large contracts and on smaller the figures may be higher. It was pointed out by the paper manufacturers, that everything entering into the production of news print has gone up from 25 to four hundred per cent. and that labor has advanced about twenty-five per cent.
The upshot of the whole matter is that the newspaper publishers and the mill operators have appointed such committees which who will go exhaustively into the problem. A joint meeting will be held at an early date before R. W. Breadner, who is the tariff expert for the Dominion and the question of supply, cost and future outlook will be canvassed thoroughly. This meeting will be held in Ottawa and if an amicable arrangement cannot be reached, the federal authorities may fix the selling price.
One interesting statement was made at the conference and that was if the fifty to sixty per cent. increase went into effect on new contracts, it would mean an annual extra cost to Canadian newspapers of about two million dollars. One peculiar feature is that while publishers are talking of increased cost of producing papers the weekly newspaper men are the only ones who have so far raised their subscription rates. The increase is from one dollar to one dollar and half a year. A few dailies that have been selling at three dollars in the smaller cities have jumped their subscription price to four dollars but the larger dailies still continued to be delivered at the old price and the wonder is why the proprietors do not raise the figure for same.
In the book and writing line prices are stiff and are now fully fifty per cent. higher than they were a year ago. The producers think there will be no further raise for some months and in view of abnormal conditions generally the users of these kinds of papers appear to be satisfied that the mills are not asking too much. Tissue plants are running away behind in orders and have business enough on hand to keep them going for the next four months even if no more orders were placed with them. The jobbers report that business is good and the demand for all lines of paper keeps up well. There has been an advance on “B” manilla but other lines of wrappings and kraft remain unchanged.
Ground wood pulp is in strong requisition and many inquiries for the commodity can not be bought filled. The price now quoted at the mill is from twenty-eight dollars up and some deliveries in Wisconsin and other states have brought as high as thirty-five dollars. Easy bleaching sulphite is now sold at one hundred and twenty dollars at the mill and some large business hasbeen placed at this figure. Sulphate pulp is quoted at one hundred and twenty dollars at the mill and is going higher all the time. Very little is being offered.
In the rag and paper stock market manilla, krafts, whites and mixed papers are all in strong demand and there is a good business being done. The market for cotton and roofing rags is rather quiet. The outlook for fall trade at firm prices is most promising.
There has been an increase of a cent a pound on all natural, bleached and half bleached grease proof. Genuine vegetable parchment is now quoted from twenty to twenty-five cents. It is likely that the latter will be made in Ontario before very long. Since the war broke out and certain mills turned their attention to making specialties and former brands of paper that have been imported, the manufacturers of these are not sorry that they took the step. Their goods now have achieved a fixed place in the favor of customers.
Board of all kinds has taken a jump of about fifteen per cent. and the mills are a way behind in their orders. The following prices will prevail until the end of the year and are based on the minimum quantity of car load lots—grey folding pulp board $100; folding pulp $90; pulp non bending $80; pulp non bending lined on side $90; filled board plain $80; filled board lined one side $85; filled board (chip mills) $78; jute, chip, straw and straw chip $70; same lined one side $75.
The following are the Toronto prices:
Roll News, $3.00 for carloads proportionate increase on small lots.Sheet News, $3.25 carloads, $3.50 up small lots.No. 1 Book, 7.50 to 8.25.No. 2 Book S.C., 6.50 in large quantities; 7.25 in small quantities.No. 3 Book F.M., 6.00 in large quantities; 6.75 in small quantities.Writings, 6.95 to 10.Writing Manila, 6.95.Cover papers, 11 to 14½c, according to colors wanted.Colored Poster, 6½ to 7½c.
Roll News, $3.00 for carloads proportionate increase on small lots.
Sheet News, $3.25 carloads, $3.50 up small lots.
No. 1 Book, 7.50 to 8.25.
No. 2 Book S.C., 6.50 in large quantities; 7.25 in small quantities.
No. 3 Book F.M., 6.00 in large quantities; 6.75 in small quantities.
Writings, 6.95 to 10.
Writing Manila, 6.95.
Cover papers, 11 to 14½c, according to colors wanted.
Colored Poster, 6½ to 7½c.
An extra charge of 10c per 100 lbs. will be made when Book Papers are packed in frames, and 15c per 100 lbs. when packed in cases.
The following are the new prices on wrappings, effective immediately:
The shortage of dyestuffs since the war has led to newsprint and some other papers being made of “natural” darker shade of color, and the Madison laboratory has been investigating the question of whether this darker color produces any additional eye strain or eye fatigue. The investigations show that it does not. This is in line with the generally-held opinion previously that eye fatigue would be even less where paper was not brilliantly white, on account of the lessened contrast between the ink and paper.