...Outlook Stable: The growth rate of Chinese demand, recovery of U.S. and Europe markets, and the effects of M&A are key drivers of North American pulp, paper, and forest products producers in 2016. The stronger U.S. dollar will continue to increase price competition for U.S. producers, offsetting much of the benefit from lower energy and chemical costs. Continued strong end-market demand for consumer products, personal care, packaging and specialty paper should support earnings of integrated producers. Consolidation Positive Long Term: Event risks and elevated leverage associated with M&A pose risks in the near term but consolidation should have positive effects on the North American industry. Consolidation should reduce earnings volatility as larger companies exhibit more supply discipline and have stronger pricing power. Increased scale provides better opportunities for efficiency gains, capacity rationalization and machine conversions. Packaging Demand Growing: Packaging demand growth...
