Friday, September 08, 2006

Recent Newsprint Price Increase in Jeopardy

Abitibi recently rolled back the announced newsprint increase of $40/ton to $20/ton. This is not a good sign for the newsprint market. Having said this, current pricing levels are nearly 50% more today than the lowest price point in 2002. North American demand for newspapers, and thus newsprint have declined. Demand was over 13million tons - is now approximately 10million tons.

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