Newsprint supply from Russia has also gained momentum after disruptions in shipping lines due to the EU and US sanctions, as per industry sources
Imported newsprint rates have dropped to $600 per metric tonne in the last quarter from a peak of $1,050 after the pandemic. Image: Shutterstock
The newspaper industry is gradually approaching pre-COVID business figures. The first half of this year has witnessed nearly a 5 percent year-on-year increase in ad space, and now newsprint prices have started to decline, leading to hopes of improved profit margins and a full recovery in the upcoming quarters.
According to an official spokesperson from the Dainik Bhaskar newspaper group, newsprint costs account for approximately 45 percent of the total expenses, including all overheads. “Consequently, any reduction in newsprint prices is poised to lower the overall cost structure, positively impacting EBIDTA (earnings before interest, taxes, depreciation). Moreover, publishers are now more inclined to increase page counts to accommodate advertisements, further augmenting revenue, thanks to the reduced newsprint prices,” the spokesperson said.
Before the onset of the Covid pandemic, imported newsprint prices stood at approximately $400 per metric tonne. However, in the aftermath of the pandemic, as businesses began to recover, disruptions in the supply chain drove newsprint prices up significantly, reaching a peak of $1,000-1,050 per metric tonne.
In the first quarter of the fiscal year 2022-23, imported newsprint rates started dropping, eventually reaching around $600 per metric tonne in the last quarter. Recent discussions point towards a range of $540-560 per metric tonne for the third quarter of fiscal year 2023-24.