Producers still pushing price hike for summer; Canfor/Tolko to partner

North American producers are sticking with their kraft paper price increases of $50/ton in the US and $40/tonne in Canada. A producer has confirmed that the price hike would be pushed on to buyers in the summer in view of expected seasonal strength and continuing high production costs. The price increase was first moved forward to June and then to July 1 2005 due to weak market conditions. The latest industry statistics show a 3.7% increase in kraft paper shipments. Tolko and Canfor have formed a jointly owned kraft paper sales and marketing partnership.