Newsprint producers hoping to charge more in France from 1 January
Newsprint producers supplying the French market are asking for higher prices as from the beginning of 2014. Capacity reduction measures have tightened the market, allowing prices to be raised, they say.
Talks between newsprint buyers and sellers about volumes and prices in the first half of 2014 in France are picking up steam. In the final two weeks of October, most manufacturers settled on their positions going into the next round of talks and, as had been expected, they want to charge more for their paper. Improved newsprint prices will sometimes attract slightly smaller hikes than standard grades. At any rate, producers are determined to reap the rewards of capacity management measures over the past few months and years and improve their margins, which they still deem to be thoroughly inadequate.
In actual fact, most sources described the French newsprint market as relatively tight and marked by strong demand. Manufacturers said that they were busy to fully sold out. Some sources remarked that suppliers slowly had to start turning down certain orders or requests for extra amounts. It should be noted that the term "strong demand" is completely relative: actual newsprint consumption will fall again in France this year. Notwithstanding this fact, capacity closures undertaken in 2012 and 2013 are slowly starting to be fully felt.
This article is an excerpt from EUWID's monthly report on the paper markets in France. The EUWID Price Watch France for October will be published in EUWID Pulp and Paper no. 44 on 30 October.
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