The days of going out and getting the newspaper off of the front porch are disappearing. My generation didn’t grow up reading the newspaper – we grew up reading the news on our phones and computers. As we continue to rely more heavily on the internet to and out what’s going on in the world, the Newsprint paper industry has seen a continued decline of nearly ten percent per year since 2000. As the Newsprint industry continues its decline along with more and more Newsprint mills running other grades, the packaging grade of Newsprint that we purchase is getting increasingly difficult to procure.
Recent news in many Pulp and Paper Industry publications mentioned a case where a US mill (that produces Newsprint) led a petition with the US government accusing Canadian mills of dumping Newsprint into US markets, making US producers of Newsprint noncompetitive. After investigation, the US government imposed duties and tariffs on many of the Canadian Newsprint mills- some hit with tariffs of over 22%. Since the majority of the Newsprint consumed in the US is produced by Canadian mills, these new duties and tariffs have caused a huge spike in the cost of Newsprint in the US and have made sourcing this paper grade increasingly difficult.
Unfortunately, this spike in Newsprint costs has forced Danco to raise our Newsprint product pricing. Looking into the future, it is very challenging to predict where Newsprint costs will go from here; with the high demand, Newsprint oversold at most mills, and new duties and tariffs in place, we feel that it is likely that we will see Newsprint costs continue to rise this year.
As the good old days of reading the newspaper continue to diminish, the days of Newsprint being the most economical choice for paper packaging may be diminishing as well.