Paper prices level off

Folio: The Magazine for Magazine Management, April 15, 1996 by Jenna Schnuer

Although it may not be a long-term panacea, publishers are receiving some short-term relief from skyrocketing paper prices. And they have themselves to thank, as cost-cutting measures over the past year have lowered demand. Within the past month, Tulsa, Oklahoma-based PennWell Publishing has seen prices fall about 10 percent--back to July 1995 levels, says COO Jim Funk.

Tom Purple, vice president and general manager of Alling & Cory in Long Island City, New York, points to "aggressive discounting for coated magazine paper." In addition, there has been a significant drop in pulp prices. Still, most industry watchers remain wary. Funk, for one, is skeptical that the price drops are just "a short-term inventory correction."