July Newsprint Hike Appears Dead
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The $35/metric ton July newsprint price hike appears dead, Wilde says. AbitibBowater, he adds, has informed customers that they are not raising prices in July. With the No.1 North American newsprint producer (40% capacity) not participating in the price hike, other producers are backing out. The price increase announcement was driven by escalating input costs. But the key issue is weak fundamental demand, Wilde explains.
Meanwhile, the strong Canadian dollar is eating into Canadian producers' margins. In May, estimated 30-lb newsprint prices in the West slipped $5/metric ton to $620/metric ton. East estimated prices were flat at $640/metric ton, +7.6% y/y, Wilde reports.
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