Q2 Paper Outlook — Run of the Mill Demand

In the first quarter, rising diesel fuel prices already led to reports of some haulers assessing a surcharge on loads to cover their higher costs. Any disruption of oil supplies could lead to broader energy shocks that would impact heavy manufacturing industries like papermaking.

In addition, the U.S. printing market has come to rely more on paper imports, particularly for sheetfed grades. There is at least the potential for the flow of imports to be reduced, if not cut off, especially given the concerns about port security that have been raised since 9/11.