Newsprint Continues to Plummet

Consumption of newsprint continues to decline with US Dailies falling by over 10% 2006 vs. 2007 (and nearly 20% December 06 vs. 07).
End user inventories also decreased 16,000 tons for newspaper publishers and mill operating rates fell to 94%. Further, exports from North American producers fell over 25% - most likely because of the weak dollar – but I’m sure lower demand was also at play.
Recall, Paper.com has reported that many North American paper mills over the past several years have shuttered equipment thus reducing supply. Good news for producers is the $60/ton increase for this quarter will most likely hold and the $25/ton announced last quarter did hold.