Conditions continue to improve gradually across most segments of the paper industry. The gains remain a function of modest demand improvement as well as continued supply reductions. Pricing is improving in key commodity paper grades like
containerboard, market pulp, and uncoated free sheet. In most cases prices are being influenced by a combination of capacity reductions combined with improving demand. Producers are trying to negotiate higher prices to offset higher energy, chemical, and freight costs that hurt margins in 2005.
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