The slowdown in the U.S. pulp, paper and paperboard industry that was anticipated at the beginning of 2001 appears to be a reality as we near mid-year. But, while the paper industry's overall demand and pricing have taken downturns in recent months, the grades of most interest to small printing companies and in-plant print shops — uncoated freesheet — show signs of holding steady and even strengthening. As prices were falling last year, buyers held off paper purchases in hopes of getting a better deal. But, this buying delay caused inventories to drain. Despite the slowing economy, demand is now strengthening for some grades of uncoated freesheet, because buyers do not want to let inventories get too low, while the underlying demand growth for some of these grades of paper is quite high.
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