Paper Economics

With demand declining for both Coated and Uncoated Papers, one would logically conclude that price is also declining (Economics 101). However, after years of disappointing financials, new operators owning and managing manufacturing sites, and strict adherence to capacity rationalization – paper is steadily increasing in price. Manufacturers are producing to demand. That being said, producers are still struggling with raw material increases for important components such as fiber, energy, transpiration, and chemicals and can not raise prices fast enough to keep up with cost. Look for more paper price increases.