The hottest newsprint is expected to be forced to

Paper is expected to be forced to reduce prices

as the entire advertising market continues to be depressed this year, the profits of some enterprises that rely on advertising revenue have shrunk significantly, and the publishing industry has also been spared and suffered a heavy blow. The fact that newspapers have been thin for more than a year has fully reflected the depression of the advertising market. The reduction of newspaper capacity is bound to affect the output of paper, so some analysts predict that the price of paper, which is hardly affected by the economic turmoil, will decline

Bowater Inc. (us-bow) in the United States and Abitibi consolidated Inc. (ca-) in Canada, the world's two largest household paper producers, control almost half of the paper market in North America

due to the soaring price of wood, the share price of Bowater has fallen by 10% since the middle of May when materials were used as the basis for product manufacturing. A bitibi's share price also fell by 11% in the same period. Both companies are "below market performance" in the S & P paper forest index this year. Bowater and Abitibi are 25% and 15% lower than the average level of the modified index, respectively

Stephen chercover, an analyst with D.A. Davidson in Poland, pointed out that the inventory of these two enterprises was too high, and the consumer market was too weak. At the same time, he was worried that the paper price could not be adjusted appropriately, causing the paper price to get out of control

according to the survey report of Merrill Lynch, the existence of paper warehouse increased by 8% last year. Publishers have felt the need to cut prices now

Gracia martore, the financial officer of Gannett Co. Inc. (us-gci), a newspaper publisher of "USA Today", pointed out that it is obvious that it is urgent to reduce the price of paper globally. The company's paper expenditure rose by 4% in the second quarter; The cost of paper for the New York Times increased by 2.8% year-on-year. However, the revenue in July declined by 11.3% year-on-year

the advertising revenue of newspapers shows no signs of improvement, and publishers have accused the current paper price of being high. "Wall Street" publisher Dow Jones & C. (us-dj) spent $626 per ton of paper in the second quarter, up 16% from the same period last year. At the same time, the newspaper's advertising revenue fell by 37% in the second quarter, dragging down the company's revenue by 18%

the price of paper in the second quarter increased by 12% over the same period last year, while the overall output decreased by 8%

facing the situation of high inventory, abiti Bi, the world's largest paper supplier, has reduced production by 191000 tons in the second quarter and plans to further reduce production in the second half of the year; Bowater, the second largest orderly developer of paper to guide and regulate China's experimental machine industry, pessimistically predicted last month that the market would continue to weaken and planned to reduce production by 80000 metric tons in the third quarter

analysts believe that the range and intensity of paper price reduction will fluctuate with economic changes, but the market of the whole industry will continue to be weak until the second quarter of 2002. Some analysts have strong ability to predict pollution, and the price of test paper is expected to fall to $550 per ton early next year