Q2 Paper Outlook — Run of the Mill Demand

Uncoated free sheet capacity fell to 13.6 million tons in 2002, which is said to be the lowest level in almost a decade. From its peak of 15.2 million tons in 2000, this drop represents more than a 10 percent decline in capacity within just a two-year period, AF&PA notes. Production is scheduled to grow to 14 million tons in 2004, or by an annual rate of 1.4 percent during 2003-2004, with no appreciable change expected in 2005.