With paper consumption on a downward slope, mills face big trouble. What can you expect in the short- and long-term future?

By Alex Brown

The record-breaking decline in paper consumption has brought prices down with it. In the short term, we can all enjoy the price plunge. But two big questions loom.

First, what’s the trajectory for pricing through the rest of this year? Will prices drop further or is backlash in store?

Second, what are the consequences of the demand drop on the paper industry overall? The current price cuts can’t boost consumption back to levels the mills need for profitable operation. What other responses might the industry have?

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Source: Publishing Executive magazine