Q2 Paper Outlook — Run of the Mill Demand

The survey report notes that, for the first time, total U.S. paper and paperboard capacity has declined in consecutive years. Capacity fell by 1.9 percent in 2001 and 1.3 percent in 2003, according to AF&PA. "The contraction reflects the industry's efforts to adjust to stiff foreign competition and a period of cyclically weak paper and paperboard demand," the report states.