Analysts: Prices For Wood Products Are Stabilizing

NEW YORK (AP) — Prices for wood products this month show that the market for paper and paperboard parts is stabilizing, albeit at low levels, analysts said Monday.

Longbow Research analyst Joshua Zaret, reviewing newly released price data from Pulp & Paper Week, said the data is encouraging. It "shows signs of continued price stabilization, but also reflects still challenging market conditions."

UBS analyst Gail Glazerman said the publication's finding of an average 1.2 percent price decline over all grades is less than half the declines in recent months.

"Overall, we remain impressed with the industry's price performance during the downturn in the face of the worst demand trends in decades, falling input costs and receipt of (federal alternative fuel) tax credits," Glazerman said.

Among paper and paperboard companies, both analysts selected as their top picks corporations that are major producers of cardboard box parts, prices for which were flat this month.

Zaret's top pick is Norcross, Ga.-based Rock-Tenn Co., one of the lowest cost producers of cardboard box materials.

Glazerman's top pick is Memphis, Tenn.-based International Paper Co., the largest North American producer of cardboard box parts.

In midday trading, Rock-Tenn rose 53 cents to $50.53 and International Paper gained 13 cents to $21.31.