Newprint Prices Continue Downward

Both the Publishers and Newspaper producers are finding increased inventory levels of newsprint on their floors. Accordingly, although the two biggest newsprint producers are maintaining the latest price increases - all others seem to be 'giving in'. We think the 4Q08 announced increase of $40-60/ton is in big trouble. USA consumption continues to decrease (YTD down 14% to 525,000 tons).