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British newsprint prices feeling the pinch in the month of June

01 Jul 2014 − 

A large number of producers and buyers of newsprint in the UK wrapped up their price negotiations for second-half contracts relatively early on again. The market appears to have turned to give buyers the upper hand: the sides have agreed on somewhat lower prices in many cases amid more than ample supply.

The downturn in paper consumption in the UK and other European markets has now erased this slight demand surplus in the UK newsprint market. This situation is manifesting itself in fiercer competition among paper producers for customers and orders despite decent capacity utilisation. The fact that more newsprint made in Eurozone countries and Canada is being offered in the UK is certainly a contributing factor too.

At the end of the day, however, buyers are clearly pushing for lower prices in talks about the second half of the year. Manufacturers had entered the talks seeking unchanged prices. A large number of contracts featuring price reductions had been inked in the third week of June.

This article is an excerpt from EUWID's monthly report on the paper markets in the UK. The EUWID Price Watch UK for June will be published in EUWID Pulp and Paper no. 27 on 2 July.

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