Paper Outlook — Prices Are Going Soft

"It's not due to a lack of demand or unusual publisher inventory levels. The issue is imports," Kullman says. "The Asian recession and resulting decrease in demand for paper has been exported to America, particularly groundwood paper. Figures from late last summer show the European industry is running close to capacity—its rate of manufacturing is a comfortable operating rate. As further statistical evidence, paper has been redeployed in North America."