Kraft Paper Prices Finally Start to Fall

Multiwall sack kraft pricing has remained relatively stable at about $850/ton, but pressure with declining sales has buyers forecasting a drop of $20-25/ton. Shipments of unbleached kraft paper dropped 32.5% in January to 90,000 tons following a 15.6% year over year decline in the fourth quarter of 2008, according to American Forest and Paper Association statistics. This isn’t just a North American phenomenon, as there are news service reports of price decreases this quarter for both bleached and unbleached sack kraft paper in major European markets.