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Pressures on paper costs intensify - Venture Insights

Report Overview

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Pressures on paper costs intensify

PublisherEnders Analysis.
Publish Date May 31, 2010
Sector Print Media.

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Newspaper publishers face paper price increases of at least 10% in H2 2010, with higher quality paper used by some book and magazine publishers rising in price by 20%.

Paper represents between 10-25% of publisher underlying costs, but their ability to push through costs to the topline by raising cover prices (as they did in 2008/09) or book prices in 2010 appears severely compromised by the declining demand for print media.

Voracious demand from China for fibre and in emerging markets generally appears to be the principal cause of rising fibre prices, in a massive swing from West to East in global paper demand, implying a future of escalating paper costs.