Paper Market Forecast — Outlook Turns Bearish

The results of this effort were quantified in the annual "Survey of Paper, Paperboard and Pulp Capacity" released earlier this year by the Washington, DC-based American Forest & Paper Association (AF&PA). According to the survey, U.S. paper and paperboard capacity declined annually from 2001 to 2003, and is expected to remain unchanged during the 2004 to 2006 period. Increased foreign competition, maturing domestic markets and competition from plastics and electronic media were cited as potential factors contributing to the lack of capacity growth.