<B>Ledger Grades Sinking</B>

Recent reports indicate that the deinking grades are continuing to sink. Several offshore mills are reporting of close to an absence of offshore orders for sorted white ledger.

Prices are reflecting this decline, with demand wavering for domestic mills.

The Korean market is one of the linchpins of the export market. But, with indications that some of these larger buyers are going to opt out of the market for the next month or so could spell further problems for SWL.

Along with the sliding price and demand for SWL have been the continued problems with computer paper. This grade, which has been eroding over the past several years due to the high concentration of laser printing, has been seeing a similar decline in price and demand.

The drop in offshore orders is being magnified by continued problems with domestic mills. The slide in prices also is being affected by continued downward pressure by declining pulp and pulp substitute prices.

While SWL prices are down sharply, some handlers of the grade are starting to inventory more of the supply, anticipating price and demand could turn within the next 30-45 days.

Several West Coast paper stock dealers note that some Asian buyers are looking to shift more of their orders to the East Coast to take advantage of the price disparity between the two coasts. This is making market conditions on the West Coast even more difficult.