BRUSSELS, Nov. 1, 2001 (paperloop.com) - Many of Europe's paper markets were skirting the edge of the downcycle when the terrorist strikes on the US occurred in September. The events shook Europe's jittery economies and stamped on the fingers of those paper sectors that were clinging on to the edge of the cliff. The effects of the accelerated slowdown have manifested themselves in the red ink and negative figures that have peppered producers' financial results for the third quarter. In an uncertain climate, buyers and sellers are unwilling or unable to make any predictions on how the year will end. "There are too many ifs and buts," one paper merchant said. But sources agreed that one brighter spot in an otherwise bleak outlook is the uncoated woodfree market. Although the sector is not in its most robust period, it is certainly in better shape than the coated woodfree market. Although demand is holding up, buyers have reported an abundance of competitive offers for spot tonnage, especially on the office-bound A4 B grade copy paper quality. On the other hand, in the smaller graphic sector of the uncoated woodfree market, the absence of euros to fund promotional campaigns has led to a steep drop in demand. The relative wellbeing of the uncoated woodfree market may be due in part to the continuing supply discipline shown by Europe's major integrated producers. Stora Enso took 223,000 tonnes of uncoated and coated woodfrees out of the supply chain through market-related downtime during the third quarter. UPM-Kymmene also matched production schedules with orders to avoid an oversupply of uncoated woodfree. But while Europe's largest producers hack away at output to maintain a balanced market, sources said that maverick producers are still undermining the market by selling paper at discounted prices.