<B>High Grades Hope the Worst is Over</B>

Pulp substitutes have taken some of the biggest hits over the past several months. Prices, which had been climbing through early last year, dropped precipitously toward the end of the year. An oversupply of market pulp helped drive down prices for the grade.

Hard white shavings have seen prices come off significantly, with some handlers of the grade reporting that they were unable to move many of these pulp substitutes at any price.

This double whammy of lower prices and no outlets should ease up after downtime is taken during the first quarter.

Norscan inventories have been climbing. Many of these producers are now looking to take much of the inventory off line, which should work to improve the flow of material this year.