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March 27, 2019

Moody’s: Negative outlook for the global forest products industry

Moody’s: Negative outlook for the global forest products industry

The outlook for the global paper and forest products industry has been changed to negative from stable, Moody's says. Global operating income will decline over the next 12 to 18 months, as wood product and pulp prices ease from recent peaks.

"The negative outlook for the global paper and forest products industry reflects a 2%-4% decline in industry operating income over the next year or so," said Ed Sustar, a Moody's Senior Vice President. "Increasing paper packaging prices and demand for paper packaging and pulp will only partially offset rising input costs, declining demand for paper and lower wood product and market pulp prices."

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