Newsprint firm in US to raise prices
AP, NYT.
NEW YORK — America’s second-largest newsprint producer said on Thursday it would increase prices by 10 per cent, a move almost certain to push up operating costs for newspapers.’
Sharp increases in the cost of newsprint are already cutting into profits at many US newspaper companies. Some publishers have said price increases of as much as 40 per cent in recent months have led to layoffs, newsstand price increases and reductions in the space allotted for news.
The price increase by Champion International Corp, will raise the price of the newspaper industry’s most important commodity to about US$743.85 (S$1,042) a metric tonne, up from the current US$675 a metric tonne and nearly double the price of early last year.
Champion spokesman Mary Green said from the company’s offices in Stamford, Connecticut, that the increase would be effective from Sept 1, just four months after an industry-wide increase of US$75 a metric tonne took effect on May 1.
There were no immediate announcements of other producers matching the increase. But because of Champion’s influence in the market, other newsprint producers were expected to follow the company’s lead, leaving newspapers no choice but to absorb the cost.
Suppliers have cited rising prices for pulp and a tight worldwide market for all grades of paper for the recent price increases.
Last month, The Houston Post went out of business for reasons that included higher newsprint prices. — AP, NYT.
Source : The Straits Times, 20th May 1995
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