Fitch expects H1 2012 to be challenging for European pulp and paper companies

US ratings agency Fitch has predicted headwinds for European pulp and paper companies in the first half of 2012. The agency says that despite improved sales and EBITDA in the financial year 2011, companies had to face a deteriorating trend during the last quarter of the year with margins coming under pressure. Pulp producers as well as newsprint and magazine paper manufacturers could be forced to take additional temporary downtime during the first six months of the year as the trend in demand is negative, Fitch adds.