Q1 Paper Outlook — The Price Is Right

The fear is that the inventory will flood the market causing prices to drop even more. In addition, Enron is involved in long-term hedging contracts with paper, pulp and paperboard producers and major buyers. With Enron's financial position compromised, these contracts now hang in the balance. It remains too early to tell what the final impact of Enron's fiscal troubles will have on the paper market.