15 March 2024

Still mixed



By Jim Thompson

We spoke about mixed signals as recently as last December.

Since then, mixed signals continue.

If there is any clarity, it is coming in three areas.

First, it feels like we are going through sort of a "last gasp" of older mills, one hundred years old or older. Especially the smaller ones in this category seem to be rapidly fading from the scene. There are some left, but if one goes back just five years, it is amazing to see the number that have fallen.

Second, we seem to be seeing more European players coming into the US marketplace. The biggest one on the scene is Smurfit Kappa's announced intentions to acquire WestRock. But there are other, smaller acquistions afoot, too.

Then, it was recently brought to my attention that roughly 40% of the containerboard manufacturing capacity in the United States is in private hands. Further, this 40% reinvests at twice the rate of publicly traded companies.

For the many analysts who read this newsletter, many thoughts to ponder here.

Announcement: Paperitalo's United States Paper Mill Directory 2024 For Wall Street is now available on Amazon. Please visit https://www.amazon.com/dp/B0C79SSBXK

Note: Neither I or anyone on the Paperitalo staff own any individual pulp and paper stocks.

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