Printers beat paper

“Now, the paper has been able to meet the demand, printing companies can no longer hoard the paper. There is no indication that the paper will increase prices, there is no need to increase the inventory approach to counter the future price increase” -----NAPL Economics Andrew Pabairuz

We must face this fact: Paper is no longer a minor issue for modern printing. If someone can still buy this year's paper at last year's price, then he is definitely a hero in the eyes of the printer, and he should be given a place in the budget team. Paper is already a top priority for printers.

The skyrocketing prices of non-coated paper in the first quarter of the year brought some panic to the printing industry. However, this trend does not appear to be too long, because the performance of the market in the second quarter is still "weak", and some experts even predict that the future paper price will reach the lowest level in 96 years.

A paper procurement official who did not want to disclose his name admitted that due to the reduction in printing demand, paper has actually been stagnant. But on the other hand, it also brought spring to the printer. Bruce Jannis, chairman of MSPGA (Management Science for Publishing and Graphic Arts), thinks so. He is convinced that paper prices will not increase in the second quarter, and the third and fourth quarters will decline, and at least remain unchanged.

It is undeniable that the decrease in the demand for commercial printing is one of the main factors that hinder the rise in paper prices. NAPL economist Andrew Pabairuz believes that the current downturn in paper prices is a reflection of the cautious attitude of printers. “Unless the increased demand for printed products drives up the price of paper, the price of paper can only be maintained at the current level.” “Now, the paper has been able to meet demand, and printing companies can no longer hoard paper. There is no indication that the paper will increase prices. It is not necessary to counteract future price increases by increasing stocks, he said.

Mark Nuo noted that during the first quarter of the paper price increase, the performance of various coated papers was fragile because people did not have much demand for them. He believes that the current weakness of paper is mainly due to the impact of foreign countries, especially North American paper manufacturers. There is also a similar point of view of Edis Herrick, who also believes that “unless the world economy recovers, there will be more and more foreign paper.”

In addition to foreign shocks, Brin Coulter believes that increased inventory of printers is another factor in the decline in paper prices. As for the price increase of non-coated paper, he thinks that he has his own reasons behind it, and he does not have to keep pace with changes in other grades of paper.

C. S. vonson Gillis, chairman and chief adviser of Cadmus Communications, has been looking at changes in paper prices from another perspective. He said: "We have been paying attention to the industry, including the merger of manufacturers and sellers, and the impact on prices." Consolidation can drive down prices and squeeze competitors. For the paper price in the future, he and his colleagues think that there will not be much ups and downs. “Although the front-stage offset printing market has encountered a price war, it is difficult to say whether paper price increases can continue and have a substantial impact.” He said in a statement.

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