Newsprint Market update

The market appears headed for another shake-out. Standard newsprint (paper used for newspapers) prices fell another $5/ton in November to $665/metric ton. October consumption figures at the US daily newspapers were off an 9%. So far this year, consumption is down 7.9%. Overcapacity in Asia and publishers' desire for pricing leverage is likely to bring some Chinese tonnage to the US - the publishers don't need to bring in much paper to create a big pricing lever.