Time to lock in supply agreements?

The article discusses the need to sign supply agreements by catalogers. With paper prices at steady or discounted levels and with mill inventories significantly down, catalogers should enter supply agreements to ensure continuous supply of paper. Dave Goldschmidt of Strategic Paper Group says that he expects mill and pipeline inventory will inch up slowly. Some 1.6 million tons of coated-paper capacity will be removed by the end of 2007 in the European market, says Michael Wade of Wade Paper Corp.