Newsprint Market Pushed by Rising Input Costs, Stronger C$
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Four of North America's five largest producers (Kruger, White Birch, Catalyst, and Norpac) have announced a $35/metric ton price hike for July 1, Mark Wilde, senior analyst with Deutsche Bank reports. AbitibiBowater (No.1 N.A. producer with 40% capacity) has not yet announced a price hike. The key drivers are rising input costs and the strengthening Canadian dollar, he adds. Fundamental demand, however, is weak. Newsprint consumption by U.S. dailies was down 7.4% y/y in April (YTD -3.6% y/y). In May, estimated 30-lb newsprint prices in the West slipped $5/metric ton to $620/metric ton. In the East, estimated prices were flat at $640/metric ton, +7.6% y/y.
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