NEW YORK MARKETS.
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.
R. W. JOLLY.