• Inflation in business travel costs will be slower this year, according to the National Business Travel Association, which forecasts 2002 cost increases of just 3% for airfares, hotel rooms and business meals, and 5% for rental car charges. Management consulting firm Runzheimer International forecasts a 7% drop in demand for all travel services—flights, hotels, rental cars and meals—in 2002.

• Corrugated packaging prices remain under downward pressure as linerboard continues to slide in what has been called "an extraordinarily weak" box market. U.S. box buys fell 6% in 2001, marking a second consecutive annual decline. Despite efforts by some mills to stand firm on pricing, many others have expanded their discount programs, dropping the January spot price (East Coast-Midwest) for benchmark 42-lb unbleached kraft linerboard to $370.

• Polystyrene (PS) oversupply will persist in 2002, keeping downward pressure on prices, according to market analysts at Industrial Information Resources in Houston. The analysts say excess supply and flagging demand caused spot prices to drop 7% in 2001 even though producers operated at less than 75% of existing capacity. "This year, purchasing growth will continue to be lower than producers expect," the researchers say. Note: PURCHASING Magazine is forecasting a 15% slide in the annual average market price for polystyrene in 2002.

• A price war is looming in the wireless telecommunications arena. Sprint, Nextel, AT&T Wireless, Verizon Wireless, Cingular and VoiceStream have completed nationwide expansion plans. That means consumers and businesses in almost every major metropolitan area now have at least four wireless carriers from which to choose. It won't be long before these firms start poaching each other's customers.

• Major suppliers have announced a 3.25% increase in base 2002 contract prices for tin mill products. Demand has been stable for some time at around four million tons per year. However, analyst Michele Applebaum at Salomon Smith Barney's Chicago office believes at least some of the hike will stick. "Higher tariffs on imports put in place about 18 months ago and shutdowns of domestic capacity will create a closer supply/demand equilibrium this year," she says.

Buyers won't be tempted to stockpile materials until they see
some signal that prices or leadtimes are threatened to rise appreciably.
According to latest forecasts, that's not likely before

2003.