<b>ONP Continues to Sink</B>

The old news market continues to suffer along with many other grades. Prices for the grade have been declining as newsprint producers look to curb their intake of the fiber.

There still is uncertainty over whether the price increase for finished newsprint will take hold. In the mean time there seems to be a concerted effort on the part of companies such as Abitibi Consolidated and Bowater to reduce as much as possible their inventory of finished products.

Offshore, there are reports that many large buyers of the grade are holding off on any new purchases while they are saddled with high inventories of finished product.

The slowing market should bottom out by this spring as new supplies dry up and newsprint producers begin running better schedules.

The export market had been driven by strong buying from Chinese and Korean mills. However, the uncertainty about market conditions has led to a sharp slide in movement to these countries.

Additionally, there are reports that India, which had been a fairly steady buyer of ONP also is opting to reduce its new purchases.