Higher Postage Cost may Stagnate USA Paper Demand

Many beleive that USA paper demand will decelerate or be stagnate in 2006 if the USPS increases postage / mailing costs. North American paper demand increased 15% in 2003 -04. Today, end user markets are beginning to weaken. Recently, ad pages increased and peaked in 2004 - but are still below the peak of 2000. Catalogue mailings increased 8% last year - but with increased mailing costs (expected in January 2006) all expect a decline in demand to occur. One issue that might assist producer price levels - is a stike at the Miramichi mill (approx 8% of North America supply).