Paper Imports Fell Sharply During 2002

Worldwide demand for paper and paper products began to show some improvement during the second half of last year, but remained much weaker than at any time over the second half of the past decade. Total paper imports into the U.S. were worth 7.1% less over the first 10 months of 2002 than during January through October 2001. Moreover, the export of newsprint from U.S. manufacturers to the rest of the world fell by 4.8% from the level of a year ago through the first 10 months of 2002.

The value of newsprint imported into the U.S. through October 2002 was down 16.9% from the total for the first 10 months of 2001. Exports were off as well over the same period of comparison, but by only 4.8%. The U.S. typically exports about two-and-a-half times as much newsprint as it imports; its surplus position in the trade of this product group grew larger through the first 10 months of 2002.

The value of imports for the trade category covering all other paper and paper products was down a less precipitous 1.2% through the first 10 months of 2002, after falling by almost 7% between 2000 and 2001. Further evidence of global overcapacity and weak demand came from the news that average prices paid for imported paper and paper products fell a cumulative 2.7% between November 2001 and November 2002, according to data coming out of the Labor Department's International Price Program.