Market participants report downward pressure on German prices for recycled graphic paper due to softening demand.
The current weak economic climate in many mature and developing European economies is also having an effect on the German market for recycled graphic paper. While market participants in certain niches still report smooth sailing, the majority of recycled graphic paper producers complained of sales problems and softening capacity utilisation rates.
As a result of decreasing demand, prices for recycled paper grades were more and more coming under downward pressure. In addition to weak demand, the recent decline in raw material costs also led to discussions about prices, market participants reported.
Slight price cuts could already been detected for recycled office paper in the second quarter of the year. Now coated paper grades are also facing the same downward trend. In recent weeks, recycled LWC has been subject to the same price reductions seen for standard paper, EUWID respondents explained.
Industry experts blamed the poor order position on unsatisfactory business development in the closely related markets for LWC and standard office papers which are struggling with structurally-related demand declines for months. Producers of recycled graphic paper are reportedly feeling the effects of what is happening there.
⇒ This article in an excerpt from EUWID's weekly report on the paper market in Germany. The EUWID Price Watch Germany for July was published in EUWID Pulp and Paper no. 31 on 1 August.
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