Paper Market Forecast — Outlook Turns Bearish

Market conditions are ripe for a price increase, Sutton believes. SC-A prices are already on the way up, with the April increase of $40/ton expected to be implemented fully by July 1st. In addition, the market can expect a second increase in the third or fourth quarter, he says.

Providing further evidence were the $60/ton increases, to be effective June 1st, announced by several makers of coated free sheet and coated mechanical grades, the analyst adds. Various coated mills reportedly have been going on allocation recently, with order backlogs building for about the past month.