nortH american newsprint exports fail to offset domestic sHipment decline

Newsprint shipments by North American producers continued to decline in May despite an almost 20% yearover-year increase in exports, according to an industry organization. Overall, newsprint shipments from North American producers fell 1.1% in May from the prior year but were up 5.7% from April, the Pulp and Paper Products Council said Tuesday. North American demand was down 8.9% in May, or 10% in the first five months of the year. exports were up 11%, with higher demand in Asia, particularly India, and in South America. exports account for one-third of all shipments by North American producers. Paul Quinn of RBC Capital Markets wrote in a report that the tem- porary idling of 750,000 tonnes of annual export capacity at a Russian mill in december helped North American producers win back some market share. North American producers will also benefit from a permanent removal of about one million tonnes of european newsprint capacity in 2013, he added. Mr. Quinn said last year’s strong gains in North American commercial printing demand masked the steep declines of newspapers, which bought 5.8% less newsprint than the prior year. The outlook is uncertain this year amid reports that some retailers are looking to switch to higher quality supercalendered paper. Commercial printing demand for newsprint was down 0.7% in May.