BEDFORD, MA , Sept. 2, 2010 (Viewpoint) - The demand/supply balance for North American paper packaging markets solidly favored producers during the first half of 2010. Demand for most grades trended up from late 2009 through the middle of 2010, fueled by the rally in industrial production. Numerous supply constraints (capacity closures, shifts in production between grades, fiber shortages and other short-term operational issues) helped tighten the market substantially. As a result, inventory levels fell, backorders lengthened and producers were able to push through a series of price increases in fairly short order during the first half of the year.
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