NEWSPRINT PRODUCERS ASSOCIATION



Who we are

Today, over two thirds of North American newsprint capacity is owned by companies with assets in both Canada and the United States. Because of industry consolidation, North America is now truly one producing region, accounting for over one third of world newsprint capacity. The NPA was formed in the fall of 1999 to reflect this new reality.

The NPA's member companies account for 98% of North American newsprint capacity. They currently operate over 40 mills located in all regions of North America.

The NPA's mandate is to work on issues of common interest, and to undertake the statistical, market research, and benchmarking work that can be most efficiently and appropriately carried out by one industry group.

The NPA also identifies public policy issues relevant to the newsprint industry and works with the American Forest & Paper Association (AF&PA) and the Forest Products Association of Canada (FPAC) to develop appropriate positions. Management of such policy issues, however, is left to FPAC and AF&PA to avoid duplication of effort and loss of effectiveness.

The NPA makes every effort to ensure that its activities do not contravene the provisions of competition or anti-trust laws of countries in which its members trade, in particular those of the United States, Canada, and the European Union.



Members of the Newsprint Producers Association

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Overview of the Newsprint Industry

By definition, newsprint is an uncoated mechanical paper mainly used in the printing of newspapers. A large portion of the newsprint produced worldwide is based on mechanical pulp, but increasing amounts are made, partly or entirely, from recovered fibre, such as old newspapers and old magazines. Furthermore, depending on the type of mechanical pulp used, some chemical pulp may be added to strengthen the sheet.

In general, newsprint mills are integrated facilities, which means that they produce on site the main type of pulp used in their furnish mix. The main cost in the production of newsprint is fibre which, in North America, accounts for approximately 30% of mill level costs. The two other significant cost elements are energy and labour which each account for 20% of mill level costs.


AVERAGE NEWSPRINT MILL LEVEL COSTS - NORTH AMERICA
2005

Wood Fibre & Purchased Pulp 31%
Energy 24%
Labour 22%
Materials & Supplies 14%
Other Raw Materials 5%
Other Mill Level Costs 5%
Total Mill Level Costs 100%
Source: PPPC


There are over 210 mills that produce newsprint in the world of which 45 are found in North America, 39 in Western Europe, and 70 in Asia. The others - roughly 40 - are found in Latin America, Eastern Europe, Oceania, and Africa. The largest newsprint mill in the world is located in Japan and has the capacity to produce over one million tonnes of newsprint per year on seven machines. In North America, the size of newsprint machines varies from 60 000 tonnes to 290 000 tonnes, with the average size being 150 000 tonnes. In Western Europe, the average newsprint machine is bigger than in North America due to the fact that the machines there are generally of a more recent vintage and more of them are dedicated to producing only newsprint.

Canada is the largest producer of newsprint with 7.8 million tonnes produced in 2005, followed by the U.S. (4.9 million) and Japan (3.7 million). Canada is also the largest exporter with around 60% of its production sold to the U.S. and 25% shipped to offshore markets. Although 45% of all newsprint produced worldwide gets exported, newsprint is largely considered a locally traded commodity. Indeed, North American producers supply 98% of the domestric newsprint needs. Similarly, Western European producers meet close to 85% of Western Europe’s needs while roughly 80% of the newsprint consumed in Asia is of Asian origin.


WORLD NEWSPRINT CAPACITY                000s TONNES


   2005 2004 Change in %


Canada 8 145 8 462 -3.7%
U.S.A. 5 130 5 351 -3.8%
Western Europe 9 953 9 795 1.6%
Latin America 935 935 0.0%
Japan 3 791 3 797 -0.2%
Asia 7 200 6 995 2.9%
Africa 465 465 0.0%
Oceania 830 810 2.5%
Eastern Europe 2 845 2 815 1.1%
World 39 294 39 405 -0.3%
Source: PPPC


Though it accounts for only 5% of the world’s population, the United States consume nearly 25% of all the newsprint produced worldwide. They have, by far, the highest number of daily newspapers with close to 1 500 titles. In comparison, Japan, which is the second largest newsprint market, has only just over 100 titles. It should be noted, however, that the average circulation per title in the U.S. is significantly lower than in most other markets (37 000 copies per title compared to 651 000 in Japan and 159 000 in the U.K.). Of all the newsprint consumed in North America, around 80% is used for the printing of daily newspapers (published at least four times a week). In Europe, this proportion falls to about 75%. The balance is used in Sunday newspapers, weekly newspapers, free newspapers (such as community newspapers), newspaper supplements, directories and in commercial printing for promotional material such as free-standing inserts and flyers. Newsprint consumption by non-daily users, particularly commercial printers, tends to be more volatile than consumption by daily newspaper because they can switch more easily to, and from, other uncoated mechanical grades, depending largely on the price differential between those grades and newsprint. For a daily newspaper, the cost of newsprint represents between 15% and 20% of its total production costs.

In terms of demand per capita, newsprint usage varies greatly between regions and even between countries within a given region. In Western Europe, for instance, demand per capita averaged 22.9 kilograms in 2005. However, it was registered at only 10.5 kilograms in France compared to 44.8 kilograms in Sweden where individual consumption was the highest in the world in 2005. In North America, demand per capita stood at 31.6 kilograms. In Asia, although the average only amounted to 3.3 kilograms in 2005, some countries, such as South Korea (21.6 kgs per capita) and Japan (30.1 kgs per capita), registered levels comparable to those in Western Europe and North America.


NEWSPRINT DEMAND PER CAPITA     (KGS)


   2005 1975 Change in %


North America 31.6 37.7 -16.3%
Western Europe 22.9 13.2 74.1%
Latin America 3.1 2.9 5.4%
Africa 1.4 1.5 -8.8%
Asia 3.3 1.4 129.7%
Oceania 35.8 33.5 7.0%
Eastern Europe 5.9 4.2 40.8%
World 6.4 5.2 22.9%
Source: PPPC


Newspaper advertising is a major driver of newsprint consumption, especially in the U.S. where it generates 85-90% of a newspaper’s revenues while other revenues come from sales (single-copy and subscriptions). These proportions are respectively 40/60 in Japan, and 65/35 in Germany and the U.K. However, in analysing newsprint consumption, it is often more meaningful to look at advertising volumes, generally expressed as linage, rather than advertising revenues which are also a function of ad rates. Unfortunately for newsprint analysts, data on advertising volumes is far less common than data on expenditures.



WORLD NEWSPRINT DEMAND               000s TONNES


   2005 2004 Change in %


Canada 1 095 1 078 1.6% (1)
U.S. 9 288 9 918 -6.4% (1)
Western Europe 9 073 9 016 0.6%
Latin America 1 693 1 761 -3.9%
Japan 3 832 3 869 -0.9%
Asia 8 277 8 200 0.9%
Africa 624 589 5.9%
Oceania 874 868 0.6%
Eastern Europe 1 752 1 706 2.7%
World 36 508 37 007 -1.4%
Source: PPPC
(1)  As of January 2004, improved newsprint reclassified as standard mechanical paper.



The North American, Western European, and Japanese newsprint markets are considered to be mature with very little growth anticipated in the long-term. For this reason, more and more newsprint machines in these regions are being converted to value-added grades. Non-Japan Asia is where significant growth in consumption has occurred in the past decade and is expected to continue, due to their rising level of literacy and general improvements in economic conditions.

More information on the newsprint industry can be found in Newsprint Facts at a Glance, published annually by the Pulp and Paper Products Council on behalf of the Newsprint Producers Association (click on Publications on Homepage).

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Grade Structure and Definitions

Newsprint
A general term used to describe paper between 40 g/m2 and 57 g/m2 generally used in the publication of newspapers. The furnish is largely mechanical wood pulp with some chemical wood pulp.


North America
The definition of newsprint used by the PPPC for statistical purposes is as follows:

Grammage
Colour
Caliper
Brightness
Ash content
Sizing
Smoothness
40 - 57 grams per square metre
white or slightly coloured
under 100.0 microns (0.00394 inches)
less than or equal to 60 ISO
not exceeding 8.0% by weight
unsized or lightly sized
greater than or equal to 2.61 PPS (S10)

Western Europe
Newsprint is that quality of paper used chiefly for the publication of newspapers and which has a basis weight of 40 - 57 grams. Other properties correspond to the EU harmonized definition, with a brightness up to and including 59 ISO.
Grammage
Colour
Brightness
Ash content
Smoothness
Bulky factor
Furnish
40 - 57 grams per square metre;
white or slightly coloured
less than or equal to 59 ISO
not exceeding 10% by weight
not exceeding 200 seconds BEKK
below 1.7
not less than 65% mechanical pulp by weight.

Rest of World
Uncoated paper of a kind used for the printing of newspapers, of which not less than 65% by weight of the total fibre content consists of wood fibres obtained by a mechanical or chemi-mechanical process, unsized or very lightly sized, having a surface roughness Parker Print Surf (1 MPa) on each side exceeding 2.5 micrometres (microns), weighing not less than 40g/m2 and not more than 65g/m2.

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How to become a member

Membership in the NPA is open to any company with newsprint operations in North America.

To learn more about the services offered and how your company can join the Newsprint Producers Association, please contact us (see coordinates below).

Contact at the Newsprint Producers Association:

Timothy Brown
Vice-President
E:  tbrown@pppc.org
T:  514.861.8849
F:  514.866.4863



© 2007, Newsprint Producers Association