Newsprint trends: no news is not good news.Is bigger better? Maybe not, but it's better than nothing at all. That is the story of the global newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been industry, which has a higher level of consolidation and has eliminated more excess capacity than most other major paper grades. Demand for newsprint in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. has been declining for the past decade and a half, and this slow motion slide has blunted the value of this economic strategy for major newsprint producers such as Abitibi-Consolidated and Bowater, which have struggled to maintain pricing and margins for their product, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. many market analysts. Without consolidation, however, this situation would likely be much worse. Globally, the growth in newsprint demand in newer markets such as Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. has not been enough to offset declines in traditional markets. As readership for large, urban newspapers continues to decline in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , many market observers characterize the newsprint market there as well past its peak. Some observers see the same signs ahead for Europe as well. Export markets for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and European producers are also in decline. Asia, a growing market for newsprint, was once an excellent export market but massive capacity expansion there in recent years has made the region much more self-sufficient. In addition, the Latin American market remains relatively small, with many countries there battling persistent economic problems. MAJOR PLAYERS Two companies--Abitibi Consolidated in Montreal, Quebec, Canada and Bowater, Greenville, South Carolina
Greenville is a mid-sized city located in the upstate of South Carolina. It is the county seat of Greenville CountyGR6 , USA--together control more than 50% of the North American market and about 20% of global newsprint capacity. Despite price hikes and capacity reduction to narrow the gap between supply and demand, these companies reported losses in the first half of 2004, though the financial news was better in the second half. Global demand for newsprint today is estimated at about 36 million metric tons/yr. [ILLUSTRATION OMITTED] As mentioned above, U.S. demand for newsprint is widely believed to be in structural decline. Traditionally, newsprint has been a cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. business, with producers earning enough profits at the top of the cycle to survive the inevitable downturns. Unfortunately, the downturn appears to be lasting indefinitely, at least in North America. Despite a recovering economy in North America, in the first 8 months of 2004 U.S. demand was reportedly down 0.8%, while Canadian demand dropped 2%, both measured from the same period a year earlier. U.S. consumption may actually increase slightly for all of 2004, but that is not likely to signal the beginning of a long-term improvement in demand, according to market analysts. Still, combined with continuing supply curtailments, it may be enough to allow U.S. newsprint prices to surpass US$ 600 per metric ton in 2005, according to some projections. However, that figure may be dependent on a continued recovery in the U.S. economy, which was looking somewhat shaky in the 4th quarter. Analysts expect the nearly continuous mill closings/conversions and supply reductions that have dominated the newsprint market for the past several years to continue and even increase in 2005. Newsprint producers such as Abitibi-Consolidated are busy converting many newsprint machines to higher value publication grades. They are also continuing to permanently close older, high cost mills. BETTER NEWS The news from Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). and Asia has been better, by comparison. Western European newsprint shipments through October 2004 showed year-to-date growth of 4.2% at 7.7 million metric tons, according to CEPIPRINT. Demand increased more slowly, at a rate of 2.5%, reaching 7.4 million metric tons during the same 10-month period. In Asia, newsprint prices in Asia rose in the third quarter as the economies of many Asian nations Noun 1. Asian nation - any one of the nations occupying the Asian continent Asian country country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" improved. LONG TERM OUTLOOK By converting newsprint production to value-added grades, such as SC, manufacturers have been able to increase revenues in some cases while moving the newsprint supply/demand ratio closer to a balance. If this continues, as expected, the market will be more focused on supply with buyers facing price increases despite less than robust demand. While recovery for the newsprint market used to depend both on strong demand growth and capacity restraint, only the latter seems to be a major factor in today's market. So, while the relentless consolidation of recent years and its attendant culling culling removal of inferior animals from a group of breeding stock. The removal is premature, i.e. before completion of its life span, disposal of an animal from a herd or other group. of excess capacity has produced some gains for the newsprint industry, the results have clearly been mixed. ALAN ROOKS Alan Rook edited the 1936 issue of New Oxford Poetry and he was a Cairo poet.[1][2] After the war, he became a wine-trader. References 1. ^ [1] 2. , EDITORIAL DIRECTOR |
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