Paper …. The New Industry

The paper industry has undergone a transformation. In the past, mills ran to full capacity – no matter what ….. even if it meant reduced pricing of products. Today, inefficient mills and/or paper machines are being shuttered, or at least curtailed until market conditions improve. Operators are now controlling supply and inventory levels are lean. With the reduction in the US Dollar, USA producers can export paper successfully. Paper mills are shading non-strategic assets – forestlands, saw mills, packaging plants, etc. Producers are also reducing the products manufacturer – evaluating and only committing to the most profitable items. Yes, the paper industry has changed, and we continue to predict that paper prices will increase and end users will have fewer grades and producers to chose from.