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Negative ad spend keeps newsprint prices down.(Brief Article)(Illustration)(Statistical Data Included)
The newsprint industry is still waiting for the promised, and much-needed, boost in pagination from the advertising sector to kick-start demand, reports John Davies.
As ever, the price of newsprint remains unchanged from last month, with 45gsm at pounds 350 per tonne - 13% less than the same time last year. Improved ISO 55gsm stays at pounds 372.
A European newsprint analyst said the market was 'rather depressed' and that the economic turnaround, which was foreseen at the beginning of the year, had failed to materialise.
'Advertising expenditure is still very negative, so demand is weaker. The newsprint market has a strict relationship with advertising revenue and the economy as a whole,' said the source.
He added that although there could well be a statistical increase in newsprint consumption in the second half of the year, this would be compared to a particularly weak corresponding period in 2001.
'The US market has improved slightly, but Europe is still experiencing a weak domestic market at the moment. There has also been more cheaper Russian paper coming into Europe,' said ...
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