Paper Department

Paper stock markets are expected to end the year positively. Helping to keep markets moving are strong quarterly reports being posted by many North American paper and paperboard companies.

Demand for many grades is being abetted by higher finished product prices, including those for many paperboard grades, tissue products and printing and writing papers. The only area that shows weakness is the newsprint market, where significant downtime earlier in the year was scheduled to bring supply and demand into balance.

Continued strength in the market pulp industry is also working to drive up many pulp substitute and deinking grades over the past several quarters. Expectations are strong that this sharp improvement will continue into next year.

On a grade-by-grade basis, the old corrugated market has been one of the few modest decliners of late. Despite some retrenching of prices over the past several months, movement of the grade continues to be strong. With more expectations that prices will increase as board mills might push through an another price increase, the mood for handlers is upbeat.

ONP markets are holding up fairly well, despite the uncertain short-term future of the newsprint market. One advantage ONP handlers are enjoying has been the combination of some strengthening offshore orders and better run schedules by many building products companies.