Newprint Consumption Down, Down, Down

Consumption at US dailies fell -20.4% in November (-15.6% YTD). Total
US Consumption, a somewhat broader measure, fell -18.0% in November
(-13.3% YTD).
The competition from other media channels (internet) continues to plaque circulation and decline for the newspaper industry.

Most of the producers have announced downtime through the balance of the last quarter of 2008 and for 2009 ---
AbitibiBowater (#1 player) has announced 830,000 tons of production
cutbacks for 2009 (17% of its capacity) with 590,000tons for beginning of 2009. Also, additional downtime of 21,000 tons at its Grenada, MS mill for January. White Birch (#2 producer in North America) has announced 50,000 tons of downtime for first quarter of 2009.

Miraculously, newsprint manufacturers have managed to keep inventories in reasonable balance. Measured in terms of "days of supply", newsprint inventories at the US dailies stand at
47 days of supply (627,000 tons). (Note: normal inventory for now is 40-44 days).

Recall that newsprint has increased $215/ton from $560/ton in October of 2007 to $775/ton this November. Although, newsprint prices slipped $10/ton to $765/ton in December. Producers were blessed with decline in key input costs (fiber, energy, and transportation costs).