Stormy Forecast for Paper Buyers

Our ace in the hole, sad to say, is a continued drop in demand that forces mills to choose between cutting still more capacity and selling at prices more favorable to buyers. Needless to say, a drop in demand comes along with a lot of other depressing baggage, including the sight of printers falling by the wayside. But those who remain strong may be able to reap benefits. In other words, the publishing market may experience its own shakeout, courtesy of rising paper prices—and let’s not forget the hike in distribution costs that completes the one-two punch.