Magazine paper producers are determined to introduce a price hike in the second half of the year despite strong competition and weak capacity utilisation in certain segments of the market.
Competition on the German market for coated and uncoated magazine paper is fierce, according to EUWID respondents. Buyers say that there is intense competition on the market in Germany, not least owing to new printing capacity, but they expect demand for paper to remain stable in the coming months.
Paper producers complain about rising production costs. Raw materials as well as chemicals and other consumables have become more expensive. Producers say this puts even more of a squeeze on their already insufficient margins. In light of these conditions, a number of paper mills are introducing temporary downtime, especially for LWC.
Price hike plans for SC and LWC paper
Besides, magazine paper producers are set to increase their sales prices as of the start of the third quarter. Several suppliers have officially launched a price hike initiative effective 1 July. More producers have reportedly joined the ranks in May, communicating their asking prices directly to the customers.
According to market observers, a few major paper suppliers were still trying to secure capacity utilisation on their paper machines. It was clear, however, that producers were determined to introduce a price hike in the second half of the year, they said.