Industry Reports

Deutsche Bank Reports Summaries

080118 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (1/18/08)

Deutsche Bank - Equity Research

* More pricing initiatives. Domtar and IP have both announced a $60/ton hike on a variety of uncoated free sheet products. IP has also announced $40/ton hike on bleached paperboard. Increases were also announced on kraft paper and recycled boxboard.

* DB trimmed its rating on O-I to a Hold. While we remain enthusiastic about Al Stroucken's efforts to re-engineer O-I, we think a good deal of "good news" is priced into the stock from a valuation standpoint. We're encouraged by pricing news, but we do expect tough volume comps in 08H1.

* $1,000/mton pulp in 2008? A fire at a Canfor pulp mill in BC has knocked the mill out of production and will tighten NBSK market.

Although inventories have crept up modestly, the market bias is still on upside. DB will be hosting a visit to Brazilian & Chilean producers in late Feb.