Q4-2011 Label Market Indices

Paper:

Northern bleached softwood kraft (NBSK) has come down to $870/ton. Forecasts have it at $920 in 2012, due to bleached kraft oversupply and downward price pressures in China, therefore we do not see the NBSK dropping any further this year.

To view the Paper Composite Index, click here.

Film:

Propylene monomer prices have moved up very rapidly in the last 6 weeks. The majority of propylene production is actually a by-product of gasoline refining. US gasoline consumption is at the lowest level seen in the last 5 years, and declining, making these propylene derivatives in tight supply. In addition refineries making purpose built propylene have diverted production to much more attractive ethane, so the ethylene crackers are making much less propylene than normal. There are also a dozen or more shutdowns planned in the first half of 2012 for maintenance. All totaled, the supply and demand equation has significantly lifted the price of propylene, at least through the first half of 2012.

To view the Film Composite Index, click here.

Inks and Coatings:

Supply is tight for the key items affecting the prices of ink and coatings. First and foremost, the price of crude oil has increased well above the $80-$90 per barrel forecasted for late 2011 and early 2012 and is now trading at $107 per barrel. Global titanium dioxide (TiO2) demand is estimated to grow at a compound annual growth rate of 3.5 percent, reaching 6.79 million tons by 2016. There are potential capacity expansions that may allow downward pressure on TiO2 prices within the next one to two years.