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N.A. Newsprint Still Anemic

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Newsprint demand in North America remains very anemic, Wilde reports. According to the NAA, consumption by U.S. dailies fell 16.6% y/y in July and was -15.6% y/y in June. Citing the strong Canadian dollar, NewPage announced plans to close its 190,000 tpy newsprint PM 1 at Port Hawkesbury, Nova Scotia on September 10. With demand continuing to slip, the closure is unlikely to have much impact on newsprint demand and supply. August estimated 30-lb prices in the East were flat at $640/metric ton. Producers have been focusing on exports. Even so, a strong Canadian dollar (big issue for Canadian mills) and rising inputs are squeezing margins, Wilde notes.

 

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