Newsprint Market Update

The official newsprint price fell an additional $20/ton, after falling $15/ton over the last few months. Without more capacity
rationalization, prices will probably fall even further. The market is weak and the proposed merger of producers such as Bowater and Abitibi will assist with adding discipline to the market and thus pricing. Consumption is down 7.9% YTD and Stora Enso has restarted its 195,000tpy newsprint mill in Port Hawkesbury (and has to "buy" a home for the tonnage). There is not much evidence of Chinese tonnage in US, but the threat alone will pressure prices.