PAPER PRICING: Pulp Nonfiction
For their part, mills can switch from making coated to uncoated paper. "Coated mills just turn off the coater. When they are really desperate for orders, they do that," Miller says. "This puts pressure on the uncoated side."
Mills (and printers) announce price increases, which are sometimes implemented and sometimes not, Miller points out in a recent Printing Impressions blog. Sometimes price increases go into effect but are quickly rescinded due to competitive pressures, usually from rival mills offering lower prices. Imports are down of late, but so is domestic mill profitability, which could lead to price hikes or capacity cuts. According to Miller, prices in the long term will almost surely move up, because unprofitable mills cannot lose money forever and will have to close, reducing supply.