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Paper Industry Customs and Practices

As in most industries, customs and practices have evolved in the paper business over the years and are practical and necessary policies that individual mills utilize in order to properly and efficiently operate their business.

The equipment available to produce and finish paper varies in size, type and speed. The following text is intended to provide examples of industry practices. The actual pricing differentials, tolerances and other trade customs are applied, independently, by individual producers to their products. Just because one mill can, or will, do a certain thing, there is no guarantee that another mill can, or will do the same thing.

A. Pricing Differentials

1. Basis Weight Differentials.

The minimum weight without a price differential is usually established for each grade. In some instances, the differentials may be stated as a specified amount in dollars or as a percentage of the price.

1. Bond Paper: The base price is usually set for 20 lb., 17" x 22"/500, paper. Lighter weight papers may be priced higher.

2. Uncoated offset: The base price for offset papers is usually set for 50 lb., 25" x 38"/500, paper. Weights lower than 50 lb. may be priced higher.

2. Packing Differentials

The base price is usually established for the most common form of packaging with price differentials applied to determine the price for the other methods. For example, the uncoated offset base price is usually set for rolls and an upcharge is applied for skids and cartons. On the other hand, text and cover papers are predominantly shipped by the mills in cartons and therefore the price for cartons is the base and a differential is applied to determine the price for rolls and skids.

3. Quantity Differentials

Individual paper mills and wholesale distributors establish price brackets based on the amount of paper ordered at one time. A typical arrangement would be to have pricing brackets similar to the following:

1. Assortments, when permitted,  provide for the assorting of sizes, weights, and colors and finishes, within a specific grade to reach a given quantity pricing bracket.

2. One item usually means one grade, color, size, finish, weight, grain and packing (some mills will permit 2 or more types of packing and assortments.)

B. Overruns and Underruns—

can vary from mill to mill and from grade to grade—for example:

These requirements mean that if a certain grade is subject to an underrun or overrun of + or -10% in a quantity of 5,000 lbs. then if either 4500 lbs. or 5500 lbs. is shipped, or any quantity between these two extremes, the mill would consider this to be a good delivery.

In order to insure that either a minimum or maximum quantity is delivered the buyer can specify either—

Minimum or Not Less Than. . . or. . .

Maximum or Not More Than

When paper is so ordered the entire plus or minus variation will then be applied in one direction only.  For example,  if a buyer orders 5,000 lbs. minimum and the normal overrun or underrun is + or -10% then the 5,000 lb. order would be subject to a 20% overrun—and a delivery of anywhere between 5,000 lbs. and 6,000 lbs. (5,000 lbs. plus 20% would be considered to be a satisfactory delivery).

C. Special Sizes, Weights, Colors

Listed below are examples of some minimum quantities required for special sizes, colors and weights. These quantities may vary from mill to mill and from grade to grade. Generally the wider and faster the paper machine the higher the minimum of the special making order).

Examples of mill customs are as follows:

• When an order for a special size is an exact multiple of or an exact fraction of a regular stock size, an exact quantity may be ordered—in other words, it is not subject to an overrun or an underrun.

• Any roll size that is the same width as either dimension of a regular sheet size is a regular or standard size.

• If 25" x 38"—with the grain of the paper the 38" way is a stock item, but the order is for the grain to be in the 25" direction 25"x 38"—then the latter is considered a special size and would be subject to the minimum order requirements and to the overrun and underrun requirements (of course, 38" x 50"—grain 50" way, if available, could be ordered and cut to 25" x 38"  providing 25" grain).

• Mills that make fancy decorated cover papers usually list minimum orders of special sizes as “equivalent of a certain number of sheets” 20"x 26" to trim 40 l/2 inch rolls.

D. Weight Tolerances

Very generally, mills make and ship paper to a weight tolerance of within 5% of the nominal weight—for example, 60 lb. basis could vary between 57 to 63 lbs. to be acceptable.

E. Trimming Tolerances

The tolerances provided may vary from producer to producer but are generally in the following ranges:

Cut size papers—  plus or minus 1/32" to 1/64"

Folio size papers—  plus or minus 1/16" to 1/32"

(Folio size papers are normally cut to the plus tolerance so that the size delivered will not be smaller than the size ordered.)

Rolls Width minus zero to plus 1/16"or  ± 1/32"

F. Squareness Tolerances

Determined by folding a sheet over on itself in both directions. (overrun or underrun).
Usually guaranteed within 1/16" to 1/32".

G. Brightness Tolerances

Uncoated Papers— plus or minus 2%
Coated Papers— plus or minus 3%