Newsprint and SC paper suppliers are confident to implement higher prices from 1 January, LWC market is softer
At the end of November, negotiations were in full swing to determine the prices and volumes for newsprint as of 1 January in France. Paper producers believe their time has come to appropriately raise prices and they have gone to the table asking for a mark-up. Paper manufacturers believe the market is on their side right now and they point to strong demand across the board and well utilised machines. Following the numerous capacity closures, the market for newsprint has changed. But the current state of the market will not persist forever because actual consumption continues to decline. In this regard, manufacturers commented that, not least due to this development, they were paying special attention this year that they did not allow customers to build up any noticeable stockpiles and were strictly keeping to the agreed volumes.
In the magazine paper segment, the situation is partly similar to that of newsprint. Producers are entering negotiations for SC B-grades targeting price increases. They also believe the good demand will give them the chance to raise prices. But it will be more difficult to mark up prices of SC-A and SC-A+, in the view of market participants.