MARKET VIEW Graphic paper demand declined sharply and remained weak throughout the year owing to weak consumer confidence related to the slowing economy and an inventory destocking cycle that took longer than anticipated. Sales volumes declined by 38% year-on-year and production curtailments were required to manage these weak demand dynamics. Selling prices were 14% higher than the prior year and remained resilient. In response to the market overcapacity and in line with Sappi's strategy to reduce exposure to graphic paper markets, the group made the difficult decision to close the Stockstadt Mill, in Germany, and initiated a consultation process for the potential closure of the Lanaken Mill, in Belgium, shortly after year-end. The packaging and speciality papers segment faced similar weak trading conditions related to high levels of downstream inventory and muted consumer demand.