The effects of the long-standing debt crisis and weakening economic strength on Italy's paper markets were plain as day in November. Weak consumer confidence and growing financial difficulties facing many companies once again resulted in slow demand on the domestic market, creating strong downward pressure on prices.
Prices for recycled corrugated case material in Italy are pointing lower again just a few weeks after the last suppliers finished off implementing price hikes dating back to September. Both, brown grades and white-top testliner were typically affected.
Containerboard producers primarily blamed the fall in prices on cooler demand. Poor operating rates among corrugated case producers had made a severe dent into producer's order books, suppliers noted. The first recycled containerboard producers had already started to lower their prices when corrugated board and corrugated box manufacturers ordered less paper than usual in October given planned industry stoppages for All Saints Day on 1 November and the next day, it is learnt.
EUWID sources noted that mounting competition on the Italian market caused additional unrest among suppliers. A few sources remarked that it was clear that prices would decline again amid the first signs of turbulence: after all, a large number of suppliers have been roaming around the Italian market for some time now, offering even high-quality paper at rock-bottom prices.
⇒ This article is an excerpt from EUWID's monthly report on the Italian paper market. The EUWID Price Watch Italy for November will be published in EUWID Pulp and Paper no. 48 on 28 November.
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