After a phase of relatively stable prices, several decor paper producers are seeking to charge more in Q2 as most talks continue.
Mark-ups for decor paper are to make up for spiralling eucalyptus pulp purchasing costs. These cost increases were primarily linked to exchange rate effects so far, but now underlying prices appear to be rising more strongly too. However, insiders have had mixed views about the feasibility of the plans. A few decor paper manufacturers report having already struck deals containing higher prices. Yet, buyers have allegedly already entered into contracts with unchanged prices that will run until the end of the first half. Most price hikes will be staggered in the second quarter. Current prices will likely remain in effect for the time being, with at least a minor increase to apply from mid-April or early May onwards.
Demand for decor paper has hardly altered in the past few weeks, insiders say. Manufacturing is running at largely normal levels, although variations in capacity utilisation from one mill to the next have become more pronounced. Most decor paper machines will stand idle for a few days over Easter, while a few machines will run without a break.