Q2 Paper Forecast — Paper Losses

"We saw paper prices continuing to aggregate along with the economy right through mid-year 2000. Prices really peaked sometime in the spring of 2000. Then, in the second half of the year, prices started to moderate significantly as the economy rapidly degenerated," he notes.

As the economy continued to weaken into the fourth quarter, Paparozzi began to notice—in his monthly survey of paper pricing and availability—that more and more printers were reporting that prices were stabilizing. "We had a huge majority report that prices were stable in the fourth quarter of 2000. That stabilization was in response to the slowing economy," he explains.