Kraft Paper Run-up Ends

A two-year run-up in U.S. kraft paper prices is over, Wilde proclaims, noting that kraft paper markets have weakened and prices are falling. Trade papers are reporting a $30/ton decline in estimated extensible sack kraft prices (December = $1,120 - $1,140/ton) with a possibility of further declines in January, he notes. Grocery bag prices, he adds, were down $30/ton m/m. The key issue is weakness in Europe and its ripple effect on domestic supply/demand balance.

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