More optimism - 2010 Improvement in Paper Industry

The Fitch Rating Organization recently forecast a modest recovery for paper in 2010. The rating service reported that short term demand for uncoated freesheet (UFS) and coated mechanical paper (LWC – Publication paper) are stabilizing and expected to rise later in year. Unfortunately, coated freesheet and uncoated mechanical (groundwood) is projected to experience slow demand Paper margins will continue to be squeezed by the rising cost of pulp, possible transportation and chemical price increases, and lack of black liquor credits.