Paper: the worst is over, but don't expect miracles

The paper industry has been suffering from a supply demand imbalance that has dramatically increased prices. The cost or pulp has risen from $390 per metric ton in 1993 to over $900 per metric ton. However, operating rates have been increasing since 1994 and the outlook is for prices to rise at a slower pace through 1997. A buyers market will not reappear for the foreseeable future as paper capacity is growing at under 1%.
Inflation may be under control, but don't try to tell that to buyers of paper and paper packaging. More to the point: The combination of rising demand and relatively small [...]