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Article: Material cost declines should push paper prices down in 2009.
- Article from:
- Purchasing
- Article date:
- January 15, 2009
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By Tom Stundza and Maria Varmazis
After a year of steadily rising paper prices, a sudden drop in demand cut prices at the end of 2008. This portends that 2009 could bring relief for office paper buyers who look to buy fewer tons this year.
Fitch Ratings' outlook on paper for the 2009 says the costs of paper production were largely to blame for the pricing spikes in 2008. However, these costs, keyed largely to energy, have begun to fall. Paired with precipitously dropping demand, paper prices are headed downwards, but paper producers have acted early to stave off any precipitous price decreases.
"Costs started to retreat late in the third ...