Producers seek higher prices for envelope and shipping bag papers in Germany
Demand for envelope and shipping bag paper in Germany picked up again in the first quarter of 2012. Producers are asking price hikes as of 1 April to compensate for higher costs of raw materials.
Demand for envelope and shipping bag paper is said to be good in Germany. Delivery times were quoted at 3-4 weeks and selling prices have reportedly stabilised in the first quarter of 2012 compared to the last quarter of 2011. However, producers claim that their earning position is no longer adequate, owing to the price decline last year and the current increase in raw material costs.
Given these factors and the increased level of activity on the German market, producers of white woodfree envelope paper are set to hike prices by 5-8% for deliveries in the second quarter. Converters confirm that higher prices have already been realized for new contracts in several instances.
Producers of shipping bag and recycled envelope paper have also communicated their plans to raise prices by €30-50/t in the second quarter. It appears, however, that converters are not quite as ready to accept an increase for these grades.