PAPER PRICING: Pulp Nonfiction
Market volatility equals a murky short-term forecast for paper prices.
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Import duties designed to cut back on surplus "dumping" in the North American market have in some cases been met by cheap imports from Europe, he says, though imports from Asia still tend to have a bigger effect on supply.
Wild cards that could affect prices here in the U.S. include the euro/dollar exchange rate (which Mahlburg says "could have a major impact on the presence of European paper in North America and the ability of North American mills to compete abroad"). American mills are in the best position to compete if international pulp prices rise. All of these factors could influence the supply of paper available (based on their effect on capacity) and the demand, both foreign and domestic.
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James Sturdivant
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