U.S. Newsprint Continues Uptick for Tenth Straight Month

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Improving demand supply dynamics have boosted U.S. newsprint prices for the tenth consecutive month, according to Wilde. List prices in both the east and west coasts rose $20/metric ton (announced = $25/metric ton) in June to $615/metric ton and $580/metric ton, respectively. East coast prices are now up 41% from the August 2009 low of $435/metric ton. The pricing disparity based on region and customer size still continues, with reports suggesting that prices for 30-lb newsprint range from as low as $540/metric ton in the West to more than $650/metric ton in the East, Wilde reports. Even at current price levels, margins for most mills will be quite low as most of the large customers are linked to the extremely low western prices, he adds.