Australian newspaper publishers have not been spared from local and international newsprint price rises as Australian producer Norske Skog continues to increase prices. This follows a stable period for newsprint pricing during the last decade as newspaper circulation and paginations declined during digital ascendancy and Covid pandemic changes. Source: Timberbiz
Following Norske Skog’s acquisition by UK investment advisory services provider Oceanwood Capital Services Management LLP, its Tasman Mill closed in New Zealand.
Australia‘s mainland mill at Albury was also closed when purchased by Visy as it strategically planned for additional softwood allocations and possibly future recycled production capacity.
Untimely losses of timber plantations after bushfires in southeast NSW in 2020, added to pressures on timber and wood fibre supply for all players.
This now leaves the Norske’s Boyer facility in Southern Tasmania as the only Australasian newsprint manufacturing facility.
Norske began increasing prices in 2020 and is scheduling further increases from 1 July, culminating in regional publishers reporting price hikes of up to 80% and orders not being fully met.
Internationally, a range of factors including reduced newsprint sales, ever capital-intensive plants and increased power prices have led to mills moving to convert to packaging to meet e-commerce and other products.
In Finland a major wood products company, UPM, faced a four-month strike now resolved, and Russia as a major supplier of woodchips is affected by sanctions imposed due to its invasion of Ukraine.
Adding to these challenges, freight, and logistics during and post Covid have added costs to paper and pulp products across the Global supply chain.
Tim Wood of IndustryEdge said some recent recovery in demand around the world was also contributing to short supply.
“The other factor with pricing for all paper products right now is that pulp and fibre costs have increased in price very dramatically. We expect pulp prices will be at record levels over coming months and all paper prices will follow”, he said.
With Australian post-covid circulations increases and page numbers recovering, plus additional regional newspapers launched particularly in Queensland, regional publishers Australian Community Media, and members of the 200 plus Country Press Association of Australia, have lobbied the Communications Minister Paul Fletcher and Deputy Prime Minister Barnaby Joyce, seeking assistance with the newsprint price hike.
