Tissue: Rising costs, demand to drive up prices, capacity in 2006

The grade structure, demand, and capacity growth of tissue in 2006 are discussed. About 8%-10% of all US tissue production is traded through independent merchants. US tissue production rose 4.3% in 2005 from the prior year to total an estimated 7.416 million tons. According to RISI forecast, US tissue capacity is expected to be relatively flat in 2006 after the relatively large rise in capacity in recent years.