Paper Outlook — Paper Trails Economy

Slowing Demands

If paper companies respond appropriately to the current market conditions, Hohol believes they could get pricing increases to go through. "Right now, there probably is still too much supply out there to satisfy a slowing demand," he notes.

In North America, the industry analyst says he doesn't see demand for coated mechanical papers rising more than 1.5 percent annually over the next five years. The outlook is only marginally brighter for coated free-wood, he adds. "I try to take a longer view, and I see problems in the longer term for demand growth."