Despite good capacity utilisation rates, producers of hygiene paper were rarely successful in their attempts to increase prices during the second quarter.
Hygiene paper producers supplying the German market are quite satisfied with their capacity utilisation. "We were well positioned in the first half of the year", said one EUWID respondent, noting that growth was achieved in both volumes and sales. The main growth driver in the consumer tissue segment in Germany is said to be the branded business. There was more pressure in the private-label brands segments, EUWID was told.
However, the earnings situation is described as "not very uplifting". An attempt by a Finnish manufacturer to raise prices for its tissue paper products by 8% during the second quarter of 2014 had not been successful. "In Germany in particular we are faced with a tough customer front", one producer told EUWID, noting that price hikes - if they could be implemented at all - would at best be marginal. Consequently, the cost pressure was increasing, he added.