Resolute and White Birch Announce Price Hikes for Newsprint in 2016
Dec. 1, 2015 - The two largest North American producers of newsprint — Resolute Forest Products and White Birch — have announced price increases for 2016.
According to industry news reports, White Birch, the second-largest newsprint producer in North America, told customers in a Dec. 1 letter that it will hike the price of 30-lb (48.8 gm) newsprint by $40 per metric tonne in two equal installments of $20 on Jan. 1 and Feb. 1. The price of other basis weights will be increased accordingly.
Similarly, the largest producer of Newsprint in North America, Resolute Forest Products, at the end of November notified customers that it will increase the price of its newsprint by $40 per metric tonne for 48.8 gm. Resolute said the increase will be phased in beginning with a $20/metric tonne hike effective with shipments on or after January 1, 2016 followed by a second increase of $20/metric tonne effective with shipments on or after February 1, 2016. Other basis weights will be adjusted as per past practices.
“Over the past year, we have seen a significant deterioration in the price of newsprint. We now believe that conditions have sufficiently improved to begin the process of recovery,” Resolute said in a written announcement.
Resolute noted that this price increase is independent of the recent price increase announcement from Ponderay Newsprint Company.
SOURCE: RISI and Midland Paper Clips