Paper

Markets Continue Struggles

Declining paper stock prices across several grades have continued to define the market. Unfortunately, the first month of the year is expected to continue the slide experienced toward the second half of last year.

Old corrugated container (OCC) markets continue to be one of the biggest problem grades. Excess supplies have led to substantial downtime throughout the last month of 2000. Moving into the first quarter, many board mills are only now tentatively coming back into the market. Demand for new material is still muted.

Adding to the overall malaise has been the lack of export orders. With little enthusiasm for the grade coming from overseas, domestic mills have less incentive to raise their prices for the material.

Old news (ONP) markets also are softening. No surprise, according to many handlers of the grade. The first month is typically a slow time for markets. Adding to the sense that ONP prices and demand are softening has been the move by many newsprint producers to carefully monitor their production figures to balance out with the demand for the finished product.

At the top end of the recovered fiber chain, pulp substitutes are posting sharp price declines. Grades such as hard white shavings and cuttings have seen prices plummet as pulp demand declines. The mood for handlers of pulp substitutes remains fairly downbeat due to a slowing economy.