Advertising dollars drives paper demand

Spending on print media advertising shot up by 8.3 per cent during 2004, providing the basis for an 8.4 per cent increase in demand for advertising-driven publication papers over the 2004/05 financial year, according to the latest Pulp & Paper Strategic Review.

Demand for newsprint jumped by 103,000 tonnes over the past three years, with uncoated mechanicals also rising by 26,000 tonnes. Coated mechanicals went up a massive 123,000 tonnes, while coated woodfrees experienced a boost of 85,000 tonnes over the period. The total demand for advertising grades thus reached 337,000 tonnes, equal to the output of a large paper machine.

Brian Stafford, co-author of the review with Industry Edge editor Robert Eastmant, points out that while demand for advertising papers is on the rise, this has been offset somewhat by the global trend towards oversupply.

“Although strong advertising demand for print led to a record high demand for the advertising grades of almost a million tonnes, both the money and real prices of these grades declined,” says Stafford.

Stafford claims the strong demand for coated mechanical grades over the past year suggests that advertising catalogues, already produced at record levels, are continuing to increase their appeal to retailers.

For more details, and to purchase a copy of the Pulp & Paper Strategic Review, contact Robert Eastmant via email at robert@industryedge.com.au , or visit www.industryedge.com.au.