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Article: Paper prices likely to increase by year end.(Market Watch)(Illustration)
- Article from:
- Graphic Arts Monthly
- Article date:
- September 1, 2003
CopyrightCOPYRIGHT 2003 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Paper prices rose for most grades in April, when the U.S. dollar had depreciated 6.7% in Canada since the beginning of the year. Canadian mills initially absorbed the exchange rate loss, but then had to raise prices when the exchange losses became too large. Canada's papermakers supply 7% to 8% of U.S. paper consumption, enough to set the price in a competitive commodity market. Since April 1, the U.S. dollar has depreciated about 6% more in Canada. Paper prices will not fully reflect this impact until mid-summer.
Looking ahead, the exchange rate is expected to stay close to a narrow range of $1.35 to $1.40 Canadian for $1 U.S. This means that currency changes ...