COATED GROUNDWOOD PAPER UPDATE

Paper.com had experienced price increases in August, with No. 5 40-lb offset rolls prices rising $35/ton. Prices continued on the website to rise in September, up another $5-10/ton. This continues the rebound from the slow demand experienced in the first half of the year, and paper manufacturers are confirminga sudden turnaround in customer demand for coated paper. Shipments rose 15.5% in July from 2006. The market is fairly tight and enjoyed more help from last week's downtime announcement from Kruger.