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Aside from supply and demand, a third factor that plays in the market is the psychology of the marketplace. According to this source, once buyers are convinced prices are going to go up, they begin to hoard paper and the increase becomes a self-fulfilling prophecy. The fact that paper purchasers have not blinked—and have not given in to forward buying—has helped to keep prices down and, subsequently, mills are running hand-to-mouth despite having had some downtime, he remarks.
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