Q2 Paper Outlook — Run of the Mill Demand

Unlike the groundwood grades, coated free sheet capacity declined in 2002—from more than 5.4 million tons in 2001 to about 5 million tons in 2002, or by about 7 percent. Another 2.4 percent drop is projected for 2003, according to the survey, which will represent a capacity decline of 12.6 percent from the peak level in 2000.