FINE DEMAND HELPS BOOST PAPER FORTUNES

Fine paper producers have been seeing ad rates rise and demand strengthening as some price increases have occurred. On the one hand, the fine paper market is proving quite buoyant these days as a number of industry metrics indicate that things are looking up for producers both in Europe and in North America. Added to that, the sector expects to see profitability improve this year - even if the full effects may not be seen until the fourth quarter in some cases. Of course, the paper industry being the paper industry, it is not all plain sailing for the companies involved. Higher energy costs are proving to be a burden on margins and further increases in the price of pulp could also be problematic for some players. Perhaps the most worrying development for producers though, is that fine paper companies in Europe could face antitrust fines.