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The Paper and Printing industry covers establishments involved in the creation of paper products such as sheet paper, boxes, envelopes, and printed paper products such as newspapers, books, and periodicals. The publishing segment of the industry includes companies engaged in printing activities including letterpress, lithography, gravure, and screen printing. The industry also includes companies that perform other services for printers such as bookbinding and platemaking.
Paper Products
The paper products sector covers the production and marketing of paper for books and magazines, sheet paper, and paper packaging. Companies in the sector often own timberlands or are closely allied with timber companies.
Newsprint prices declined in the final quarters of 2006. Domestic demand for newsprint has decreased and competition is expected from the entry of Chinese newsprint into the US market. Prices for most other grades of paper and packaging remained stable. Production costs, however, have been on the rise. With both transportation and energy expenses at high levels, producers of paper products are finding it difficult to improve earnings.
Demand for corrugated packaging has also declined. A downturn in the housing market has limited demand for large packaging, which is driven by packaging for home appliances, building materials,...