While 2007 was a bleak year overall, newsprint producers regained
pricing power in late 2007 by masterfully managing supply by continuing
to shutter high cost capacity. Despite a steady drop in consumption,
newsprint prices have risen dramatically—$180/tonne over nine months if the latest increase is enacted—and helped mills stay ahead of huge cost increases.
In mid-2007 it would have been tough to write a column on the newsprint market and find anything good to say. Every major market indicator was negative. The US newsprint market was tilted substantially in the favor of buyers as an excess of tonnage was looking hard for a home while demand was plunging and prices