North American Newsprint Consumption Continues Slide
June 30, 2009 - Total North American newsprint consumption fell 28.9 percent in May '09 compared to May '08, and despite price hike announcements for August 1 by nearly all the major producers, prices continue to slide.
FOEX reported its price index for U.S. newsprint (30lb.) dropped $8 from last week to $532.30/ton. Since the start of the year, NA newsprint prices have dropped nearly $220/ton.
While producers are taking extensive downtime (693,000/mtons or 27% of North American quarterly capacity during 2Q), says Deutsche Bank's Mark Wilde, further capacity cuts are inevitable.
NA Newsprint mills operated at 67% capacity in May '09 vs. 94% in May '08, Wilde noted.
In Europe, demand for newsprint in May '09 was off by 16 percent compared to May '08, according to CEPIPRINT. However, FOEX's index price for standard newsprint
45 g/m2 dipped only 50 cents from last week to EUR 518.96.
SOURCE: Deutsche Bank and FOEX