UK prices for newsprint up from 1 July
Buyers and sellers have agreed to raise newsprint prices in the UK after talks lasted unusually long into July.
Talks to settle on new newsprint paper prices for the second half of the year or the third quarter dragged on into July in the UK due to the divisive stances adopted by buyers and sellers. Especially in the UK producers tried hard to increase prices since the trend in exchange rates had pushed prices to a very low level in comparison.
Virtually all deals involving newsprint were now done and dusted with very few contracts left open, EUWID sources said. UK standard newsprint prices showed an increase of up to 7-8% in second half or third quarter contracts. Improved newsprint prices rose by a similar or lower sum, but on a less uniform basis depending on whether the buyer was a publisher, printer or retailer. Some of the hikes for improved grades leaned more towards the somewhat smaller increases for SC paper, it is learnt.
Manufacturers characterised demand for newsprint as satisfactory and their capacity utilisation as good as a rule. However, this state of affairs is being credited almost entirely to the capacity cutbacks; newsprint consumption continued to wane in the UK. More than a few market players expect consumption to fall by up to 10 % this year, something that is verified by statistics released to date.
This article is an excerpt from EUWID's monthly report on the paper markets in UK. The EUWID Price Watch UK for July will be published in EUWID Pulp and Paper no. 30 on 24 July.
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