Graphic Arts Index
Staff -- graphic arts online, 9/1/2004
The strong worldwide economic recovery has sharply boosted paper mill costs. Pulp prices rose 8% in the fiscal year ending in June. Ahead, pulp prices will rise more slowly, energy prices will partially retreat, freight rates will increase slightly faster, and equipment price inflation should decline to a 0% to 1% pace. Overall, the pace of paper mill cost increases will slow moderately though the end of 2005 compared to early 2004. But this moderation of cost pressures will be more than offset by the impact of rising paper demand on mill capacity.
