N.A. Newsprint Trends Mixed
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Newsprint list prices on the U.S. West coast rose $5/metric ton to $625/metric ton, while prices in the East were flat, according to Wilde. "With this, the East/West gap is now down to a mere $15/metric ton."
Discussions with trade contacts suggest that producers are unlikely to announce any further price increase this year. Domestic demand has stabilized and inventories are falling. But the key element has been a surge in exports, particularly to Asian markets such as India. In October, N.A. shipments were +1.2% y/y with domestic shipments -5.4% y/y and exports +20% y/y (below the ˜50% average monthly growth posted in the first 10 months). N.A. mills are also benefiting from the sharp rise in ONP costs around the globe. Also, N.A. mills are less dependent on recovered paper for their fiber supply, Wilde notes.
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