Higher prices are necessary to compensate for higher input costs and restore margins manufacturers say.
Following a positive development in the first three months of the year, order intake in the German label paper market continued to improve on seasonal factors in the second quarter. Lead times consequently increased to five weeks on average. In the case of wet-strength and alkali-resistant grades deliveries were said to be running at six weeks.
As regards the third quarter of the year, comments on the business development vary. While one manufacturer explained to have already noticed a decrease in orders on hand in the traditionally weaker summer months, others reported satisfactory order intake. Production stoppages have not been scheduled for the holiday months, according to manufacturers.
Prices remained unchanged across all grades in the second quarter. However, manufacturers had announced an increase to prices by 5-7% for all deliveries as of 1 July in order to offset extraordinary expenses caused by higher raw material, energy and transport costs.