Paper Recycling Conference & Trade Show: Old News

While the outlook for the newspaper and newsprint industries in North America may be on the bleak side, on a global scale, demand and capacity remain strong, according to Sylvain-Yves Longval of Abitibi-Consolidated Corp., who spoke at the meeting of the Paper Stock Industries (PSI) Chapter of ISRI at the Paper Recycling Conference & Trade Show held recently in Orlando.

Newspapers’ share in worldwide advertising has trended down in recent years, however, it remains the second most important medium for advertisers after television, Longval said. Furthermore, bolstered by growth in Asia, paid circulation has continued to grow, reaching a new high of 451 million copies daily in 2005. Longval said China, India and Japan account for 62 of the 100 best selling daily newspapers.

He said that global demand for newsprint increased in 2006, mostly because of higher demand in India and China. Longval said world demand for 2007 is expected to be up slightly and then in for a rebound in 2008.

China, India and Eastern Europe will lead growth in newsprint demand in 2007, which will be partially offset by weak demand in North America, he said, adding that North American demand in March had declined 12 percent year-to-date.

Capacity is also expected to increase in 2007 and 2008, because of new paper mill startups in China, according to Longval.

With new domestic capacity, China’s imports have significantly decreased. Japan is the main supplier of newsprint to China, with more than 80 percent share of total imported volume year-to-date in 2007, according to figures provided by Longval.

In the United States, however, newspaper circulation has declined. A recent ABC audit report shows circulation down 3.1 percent on Sundays and a 2.1 percent decrease on weekdays between October 2006 and March 2007. Longval sites competition from free dailies and the Internet as primary contributors to the decline in daily newspaper subscriptions.

Newsprint consumption is also down more than 12 percent year-to-date in the U.S., he added.

Availability, cost and quality are among the main challenges to recycling newsprint, Longval said. He added that recovery rates alone are not the ultimate goal or main driver of recycling. “Technology is the main driver,” he said, “and the ability to deliver high quality material.”

 Even in the face of many challenges, there is “a lot of room to grow with news,” Longval said.

The Paper Recycling Conference & Trade Show was held June 10-12 at the Peabody Hotel in Orlando. More information is available at www.RecyclingTodayEvents.com.