Stopping Asian Coated Paper
New Page Corporation Takes a Stand
Friday March 30th is the expected day a court decision is to be announced regarding imposing tariffs on Asian coated paper coing into the USA. This past year, New Page Paper had filed a suit charging Asian paper producers with dumping coated paper here in the North America, the most coveted paper market in the world, at below market prices through foreign government subsidies and cheap labor.
It's about Money
The Asian paper issue has been brewing for a number of years. Starting on the west coast mainly Chinese, S. Korean and Indonesian paper producers have been pumping out cheap paper and dumping this paper into USA markets. The affect, not surprising, has been to force USA coated paper manufacturers to artificially hold down prices. Sometimes the differential between domestically produced and Asian coated papers has been reported to be as much as $20 cwt. Grouping the Asian producers in one group, they are commonly regarded as having very low service levels and unreliable shipping habits. However, such a huge price discount still creates demand for these products here from those looking to purchase paper as cheaply as possible regardless of service, reliability and environmental concerns.
It's About the Environment
USA and North American paper mills have been leaping forward in new environmentally sound initiatives one after the other. The Asian producers have mostly ignored this environmental call to action and maintain practices of using wood harvested from non certified forests, do not provide many recycled options if any and seem to be unconcerned about Global climate change and the emissions of C02. I have yet to see an Asian paper mill boast of using a renewable energy source.
The Court will Decide
Is it right or wrong to levy tariffs on a low cost producer? Sometime, hopefully today, a USA court will make that decision in a legal sense. If this action succeeds it will be very good news for USA coated paper mills and it will have ripple effects throughout the paper and graphic arts industry. More to come. Stay tuned.
Friday March 30th is the expected day a court decision is to be announced regarding imposing tariffs on Asian coated paper coing into the USA. This past year, New Page Paper had filed a suit charging Asian paper producers with dumping coated paper here in the North America, the most coveted paper market in the world, at below market prices through foreign government subsidies and cheap labor.
It's about Money
The Asian paper issue has been brewing for a number of years. Starting on the west coast mainly Chinese, S. Korean and Indonesian paper producers have been pumping out cheap paper and dumping this paper into USA markets. The affect, not surprising, has been to force USA coated paper manufacturers to artificially hold down prices. Sometimes the differential between domestically produced and Asian coated papers has been reported to be as much as $20 cwt. Grouping the Asian producers in one group, they are commonly regarded as having very low service levels and unreliable shipping habits. However, such a huge price discount still creates demand for these products here from those looking to purchase paper as cheaply as possible regardless of service, reliability and environmental concerns.
It's About the Environment
USA and North American paper mills have been leaping forward in new environmentally sound initiatives one after the other. The Asian producers have mostly ignored this environmental call to action and maintain practices of using wood harvested from non certified forests, do not provide many recycled options if any and seem to be unconcerned about Global climate change and the emissions of C02. I have yet to see an Asian paper mill boast of using a renewable energy source.
The Court will Decide
Is it right or wrong to levy tariffs on a low cost producer? Sometime, hopefully today, a USA court will make that decision in a legal sense. If this action succeeds it will be very good news for USA coated paper mills and it will have ripple effects throughout the paper and graphic arts industry. More to come. Stay tuned.
Labels: Asian coated paper, coated paper, New Page paper
posted by Brian Cowie at
8:56 PM
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