Moderate price increases for newsprint emerge in the UK
Most of the contracts for newsprint deliveries as from 1 January have been signed in the UK. Prices rose a little but some producers had hoped for more.
Newsprint has typically cost somewhat more in the UK since 1 January. Manufacturers primarily consider these increases to be the fruits of their work to scale back capacity in recent months and years. Increases in improved newsprint prices turned out to be somewhat smaller than those for standard grades on average.
The stronger pound-euro exchange rate may well have curbed the price hikes in the UK a little. "We should have got more out of it," one paper producer said, describing the outcome of the latest talks and underscoring his good order books in December. Most of his competitors also said that demand had been strong to very strong in December. Manufacturers are reporting somewhat weaker business for seasonal reasons in January.
The British market was again one of the first to settle on new newsprint contracts. A number of buyers and sellers had entered into deals on prices and volumes from 1 January onwards as early as December. Virtually all agreements had been signed and sealed by the middle of January.
This article is an excerpt from EUWID's monthly report on the paper markets in the UK. The EUWID Price Watch UK for January has been published in EUWID Pulp and Paper no. 4 on 22 January.
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