So far, prices for paper and pulp have not risen, in fact they remain weak in North America. But some firms around the world are beginning to get slightly larger orders from European buyers, market analysts said. Such reports are fueling ideas that further delays in getting a settlement among the labor unions and the employers could make paper and pulp supplies noticeably tighter.

There have been some advances in contract negotiations in Finland. The companies are said to have struck a deal with the white-collar employees, but the production-critical blue-collar employees have yet to come to terms with the employers.

Finland's index provider FOEX, in comments accompanying its list of price indexes this week, said the first signs of tightening business conditions are beginning to appear "among the higher imports of paper by Finland itself."

The situation could continue to tighten if the lockout lasts any longer, FOEX said. It could take place even if production were to resume soon, because it takes at least a couple of weeks to get the whole pipeline flowing again.

A Canadian consultant said even if the unions accept the latest offer from the employers, it would be early July before the mills could reopen.

Prior to the strike, which led to the lockout, pulp and paper buyers stocked up, the Canadian consultant said. This helped push prices of hardwood pulp, especially eucalyptus, because demand was strong and supplies were tight at the time, he said. Softwood prices were down and supplies were more readily available for stockpiling, though.

In Asia, many of the pulp producers are resisting further price cuts suggested by the buyers, the Canadian consultant said. Prices are about steady, but there are rumors that pulp producers in North America and elsewhere are contemplating a price increase in this part of the world.

Every week the lockout goes on, it's going to bite harder, the Canadian consultant said. The market could see a reversal of the current price slide in North America. If it does, it's likely to see it during the summer and build momentum going into the fall.

FOEX this week reported its U.S. price index for NBSK pulp at $634.23 a metric ton, down $3.08 from a week earlier. The index price is $12.36 lower than it was Jan. 1.

FOEX reported this week its European price index for NBSK at $602.54, for a loss of $2.62. This is $19.75 lower than Jan. 1.

Pulpandpaper.net reported NBSK pulp prices as of June 1 in North America at $620 to $630, down from $650 to $670 on May 1. Its NBSK price for Europe was $600 to $610, compared with $600 to $620 on May 1.

-By Lester Aldrich; Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com