Coated Paper Prices Still in the Basement

Buyers and mills alike wonder when the decrease in coated paper prices will stop. For the mills, the black liquor credit, reallocating production to uncoated grades, and taking equipment out of production are all assisting; BUT, demand continues to shrink and buyers continue to deplete inventory already on floor. Unless magazine advertising increases, postal fees stabilize, and retailers boost catalogs – not much short term hope remains. One would assume the manufacturers are close to cash cost and, therefore, for survival ‘ have found the floor’.