Monday, November 10, 2008

Publication Papers Remain Weak in Demand

Producers of Groundwood containing papers for publications continue to take market related down time to maintain a balance because of weak demand. Magazines pages have been reduced, fewer catalogues are being mailed, and newspapers have reduced Sunday Inserts - all hurting Groundwood demand. Resulting from poor advertising pages (down 12% this year) and no relief in sight - 2009 is forecasted to be difficult for manufactures.
We have reported in past of paper producers taking down time - NewPage (Kimberly, WI); Kruger (Trois-Rivières -Québec -Canada); Domtar (Columbus, MS); AbitibiBowater (Catawba, SC). Although this will assist, we beleive manufactures will begin to 'officially' reduce pricing.

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