Paper Imports Dropped During First-Half 2002

Worldwide demand for paper and paper products remains weak. After falling by 6.2% between 2000 and 2001 (based on the estimated combined value of all kinds of paper, including newsprint), total paper imports into the United States were worth 9.4% less over the first half of this year than during January-through-June 2001. Moreover, the export of newsprint from U.S. manufacturers to the rest of the world fell by 7.1% from the level of a year ago through the first six months of this year.

The value of imports for the trade category covering all paper and paper products (sans newsprint) was down 3.5% through the first six months of this year, after falling by almost 7% between 2000 and 2001. Reduced demand for paper products has been keeping average prices in check as well. Weaker worldwide economic growth has eased inflationary pressures for paper and other important commodity products that are traded internationally, because there's been a glut of global manufacturing capacity for most grades.

Average prices paid for imported paper and paper products fell a cumulative 10.3% between June 2001 and June 2002, according to data coming out of the Labor Department's International Price Program. Imported paper prices have fallen sharply across the board during the past year, with the average price of all imported paper/paper products plunging by 13.3% from June 2001 until this June.

Newsprint prices declined at an even steeper 27.7% rate over the 12-month period.