UFS - Paper Producers Stabilize But Risks Remain
A slowing global economy and trade war concerns have weighed heavily on US paper producers, who depend on demand for consumer product packaging from abroad against the backdrop of e-commerce shipping at home. As if that weren't enough, volatile materials costs have put additional pressure on major players like International Paper (NYSE: IP), Packaging Corporation of America (NYSE: PKG), and Domtar (NYSE: UFS). The question facing investors is whether now is the time to buy into the sector as troubles fade and valuations are attractive — or whether another shoe is likely to drop.
Paltry pulp prices are plaguing paper producers. Source: Getty Images.
The past few years have seen extreme price volatility for the raw wood pulp used to make paper products.