Price discounting in the West raises specter of East-West divergence

摘要

Weak demand in the US West may lead to a return to the North American East-West price gap, contacts speculated this week. With customer inventories well stocked and mill inventory levels higher than many producers would wish, both eastern and western mill contacts spoke of highly competitive pricing by some mills in the West. More than one source said an eastern supplier had also offered low-priced newsprint in job lots in some western areas "but not on a continual basis." At least one large newspaper publishing group was also seeking to leverage the situation by pushing for discounts on contract business $25/tonne below typical big-buyer price levels, sources said. "A few big guys are looking to get a price and push it across the market, trying to make a market," one publisher contact said. "In the past couple of weeks, it's been more apparent."