Canada’s Paper Products Industry: Industrial Outlook Autumn 2007

Dollar—The Canadian dollar, which was running ahead of the U.S. dollar in early November, is expected to stay strong in the short term. This will put additional downward pressure on the price Canadian producers receive for their paper product exports, directly reducing their profitability.

Newsprint—Newsprint prices are declining on weak Canadian and U.S. demand as advertisers switch to digital media. Combined with an excess capacity of North American newsprint, the result could be further shutdowns in the industry.

Wood Pulp—As a result of the burgeoning Chinese paper industry, wood pulp is now the top Canadian export product to China.