New York, N.Y., October 7, 1916.
The outlook in ground wood pulp is very discouraging, so far as the
consumer is concerned. There is now a definite certainty that the
market must continue to grow more acute and that the value of pulp
will be on the ascendancy for some time. While there has been no
material increase in the quotations reported for ground wood, since our
last issue, these figures are beginning to represent nominal issues,
for it is becoming rather difficult to negotiate for such supplies.
Now, more than ever, does the prediction, made several months ago, that
ground wood pulp would reach $40.00 per ton, seem plausible. From the
grinders come reports that they have little to offer. They are working
their mills to capacity fulfilling obligations which carry them through
the balance of the year. Those mills which have surplus stocks are
asking tophigh prices.
It is most unfortunate at this time, but it is understood that, in
various parts of the country, the water conditions are very poor and
that it is with difficulty many of the machines are being kept in
operation. In fact, some of the mills have been shut down a good part
of the time, owing to lack of water power. This is a very serious
condition, because the demand has reached extraordinary proportions.
Not only is there the usual call for ground wood, caused by the Fall
business, but there is an added demand, stimulated by the shortage of
sulphites and the rush of many mills to substitute, as far as possible,
the ground wood pulp. Present quotations have already reached $30 per
ton, f.o.b. mill.
Conditions in the sulphite markets seem to be growing worse, rather
than showing any tendency to improve. Importations are very limited
and it is apparent that the foreign producers are not at all very
anxious to have much of their stock sent to his country. For, they
say, the continent of Europe presents a much better paying field. It
is understood that the Germans, the French, Italians, and the other
countries which are able to get stock from Sweden are paying whatever
is being asked--more than the current quotations in the United States.
Domestic mills are working to capacity and the volume of imports
from Canada has increased considerably, but the demand is of such
proportions that it is impossible for the manufacturers to keep up
with it. A great deal of interest is reported in the market, but mills
still hesitate about paying the very high prices and are buying very
cautiously, in the hope that the situation will improve in the near
future. But indications are far from warranting such hopes. Bleached
sulphite is to-day quoted--nominally--at as high as 9½c for foreign
stock. Easy bleaching is going at about 6½c--whenever it can be had.
Domestic unbleached is quoted at about 4c, but is also not available
in large quantities. Foreign strong unbleached remains at about 5c to
5½c. Krafts are to-day practically unobtainable. The producers are
consuming whatever they have not already contracted to sell, finding it
more profitable to convert the pulp into paper. Reports have been heard
of instances where manufacturers have not found it possible to live up
to their obligations and have had to stop deliveries on contracts. The
nominal price for kraft pulp is about 5¾c.
The rag market, as a whole, is very quiet. As the local dealers say,
the situation is dependent on the action of roofing rags and, since
these are inactive, the other grades are forced into a similar state.
Reports from the roofing mills show that they are all working to
capacity and that they have plenty of orders on hand. However, they
are all pretty well stocked with rags and have no need to come into
the market. It seems to be understood in the trade, from the way the
buying is going on, that the manufacturers are conferring possibly
once a week and are informing each other of the various amounts of
stock which have been offered by dealers and of the prices which have
been named. In this way it has been possible for them to keep tabs
on the rag men and to keep the market from advancing. Because of the
inactivity in roofing, thirds and blues, solid whites, and the other
grades of old rags have not been moving very well, nor have they been
bringing the prices which the dealers expected they would be bringing
at this time of the year. A slight increase, however, was noted in
the demand for No. 1 new white rags. In fact, one rumor had it that a
large lot of these rags had been sold at 10c. It is known that a large
writing manufacturer refused an offer at 9c and a little later wired an
acceptance, but it was not taken.
Rope has been looming up strong within the past few weeks and the
market is now verging the 6c mark. It is understood that there are lots
of stocks in England, but these cannot be had because of the embargo so
the domestic manufacturers find themselves facing a scarcity in this
particular commodity. The demand is now improving and bids fair to
continue so for some time.
The waste paper market has been characterized with considerable
activity during the past few weeks. The shortage of sulphite has
stimulated buying considerably and everyone is in the market looking
for stock. Hard white and soft white shavings, in particular, are in
strong demand and are reaching a stage where they will be hard to
obtain. They are quoted about as follows: hard white, 4¼c to 4¾c; soft
white, 3 to 4c. The demand for ledger, magazine and book stock is
fairly strong and will most likely increase in strength, if present
indications are to be taken into account. Ledger stock is at 2¼c to
2½c; magazine, at 1¾c; krafts, at 3c; mixed papers, at 60c to 65c.
In the paper market, the acute situation remains unrelieved, nor is
there any apparent sign of relief visible. This is true of all kinds
of paper. The mills are all operating to capacity in the hope of
catching up with orders, but this hope has been futile as will be
realized when it is understood that some of the manufacturers are still
working on orders received several months ago. Newsprint has been the
miracle of the industry. Despite all of the schemes which have been
published stating the many ways in which the newspapers were curtailing
their consumption and saving paper, the demand is to-day as strong
as it ever was. The mills are shipping more than 100 per cent. of
their production--drawing from their reserve supplies, so that these
have dwindled to a dangerous degree. It would be hard to name a real
quotation for newsprint at the present time for the only lots to be had
are not those in the hands of jobbers who are asking as much as they
can get for their stock.
Wrapping papers are still very hard to get. It will be interesting to
know that many of the large consumers of wrapping paper have reached
the stage where they find they cannot stand the cost and are making
price as follows: so much for an article unwrapped, and so much for an
article wrapped.