Paper Market Update — Paper Industry Strikes Out

Shipments of uncoated offset are down due to loss of market share to coated grades and value-added, high bright uncoated groundwood grades, the industry consultant continues. "Declines in shipments overstate the drop in real demand, however, because there was some inventory building in 2004. That inflated the shipment and apparent consumption numbers for 2004, and reduced 2005 shipments as this inventory was worked off."