Demand for label paper in Germany sluggish, prices stagnating


On the German market most label paper producers have a disappointing third quarter in their rear view mirror, but prices remain largely stable.

Order intake for label paper had been "cut off" since August in Germany, some manufacturers told EUWID. A few producers had temporarily shut down machines to adjust their capacities to reflect demand. However, other suppliers still had adequate order cushions and were thus able to run their facilities without interruptions.

Manufacturers are not very optimistic about the outlook for the remainder of the fourth quarter. Business had now entered the traditionally weak stretch of the year. Demand would thus not get any better this year, they say. Wet-strength and alkali-resistant label papers were now ready for delivery in a relatively short time period of within a fortnight, but one market player is still reporting lead times of up to 6 weeks for all grades.

No changes occurred on the price front in the third quarter, with prices holding steady again in the fourth quarter. The customary practice is still to enter into quarterly or six-month contracts, with full-year contracts not unusual, either.

⇒ This article is an excerpt from EUWID's report on the German paper market. The EUWID Price Watch label paper for Germany is being published in EUWID Pulp and Paper no. 42 on 17 October.

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