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NEWSPRINT: PRICE INCREASE HOLDING FIRM

MONTREAL, QC -- Newsprint is "stumbling through," said Vancouver-based Reid Carter, a paper and forest products analyst at National Bank Financial, referring to the price hikes that took place on Apri...


May 1, 2000
By Pulp & Paper Canada

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MONTREAL, QC — Newsprint is “stumbling through,” said Vancouver-based Reid Carter, a paper and forest products analyst at National Bank Financial, referring to the price hikes that took place on April 1. The largest North American producers like Abitibi-Consolidated Inc. and Bowater Inc. (as well as Donohue Inc., which Abitibi announced will be merged into its operations) have held firm on the $50-a-tonne (US) price hike, which brings the benchmark price for newsprint to about $550-a-tonne (US). “Smaller firms have delayed price hikes until the end of May or early June,” said Carter, who suggested that another comparable price increase is likely in September. By then, Abitibi would have removed at least 200 000 tonnes of capacity, which is expected to drive the price of newsprint near the $600-a-tonne (US) mark.