Monday, January 25, 2010
Newsprint Producers Hope for Improvement
The year 2009 was not kind to many paper markets, and Newsprint was hit especially hard. After a reduction of 14% in 2008, demand continued to erode another 24% in 2009. Electronic communication has truly hurt this industry. Capacity continues to outstrip demand, despite reduced pricing and plant closings. AbitibiBowater continues to operate under chapter 11 - commanding 43% of the market, White Birch is #2 at 22% - failed to pay an interest debt due last Fall, and Port Huron - filed for bankruptcy protection. Even if the economy improves, will end users go back to newspapers for news, classified advertisements, and coupons?
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2 comments:
Will the e-readers further eat into newspaper's readership?????????? Although difficult to believe a world without printed newspapers - but how will they ever survive - much less get back to prerecession demand??????
What is the basis for the newsprint producers to possibly think demand will increase? Unless this economy improves - items such as newspapers, books, and magazines are quickly cut out. Also, so much of what we can read from a newspaper is readily available - for free - on the web. I, for one, think the young today have limited interest in ever physically reading a newspaper. Comments?
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