Italian LWC paper prices down on weak demand and excess supply

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While negotiations on the newsprint market continued to drag on in Italy, prices for magazine paper have been settled in February. Market players report a drop in LWC prices amid weak demand and excess supply.

The latest round of price talks on the Italian magazine paper market turned out to be a real disappointment for more than a few producers. SC-B paper suppliers were the only ones who managed to charge more in new contracts for deliveries in the first quarter / half of 2014. SC-A paper prices stayed unchanged at the levels seen at the end of 2013.

LWC manufacturers were unable to withstand pressure from surplus capacity and bowed to customers' calls for price cuts for deliveries in the first three or six months of the year. EUWID sources typically reported discounts in the region of 2% for LWC offset and rotogravure paper.

Amid a drop in magazine advertising pages and revenues and downgrading tendencies across the printing industry, EUWID contacts expect demand for magazine paper in Italy to weaken again in 2014. LWC suppliers in particular are required to get a grip on their capacity rapidly to stave off another decline in prices in the second quarter or second half of the year.

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