Uncoated Freesheet Market to Rely On Continued Capacity Control in 2007

Industry consolidation and the closing of over 1.5 million tons of uncoated
freesheet capacity since 2005 led to strong price gains on all major grades in
2006. With U.S. demand growth expected to be negligible at best in 2007,
following on the heels of a contraction of demand in 2006, continued capacity
control is needed if producers are to sustain prices at current high levels.