Today, yet another mill, Suzano Mills announced a price INCREASE effective August 15, 2010 of $2/cwt. The letter merely states there is an increase, and gives absolutely no explanation. Keep in mind that many economists would agree that we are in a deflationary mode (prices should be going DOWN, not up. Allow me to quote one of them:
“Four major considerations suggest that the past several quarters may be nothing more than an interlude in a more sustained economic downturn, with further negative quarters still ahead. Such an outcome will suppress inflation further and quite possibly lead to deflation. ” (http://www.marketoracle.co.uk/Article21046.html – 7/10/2010)
This increase is on the heels of many other mills increasing prices as well. I wish the Department of Commerce and Justice would worry more about paper mills engaging in collusion than worrying about taxing foreign imports and protecting their antiquated pricing models.