Against the background of declining consumption prices for magazine paper continued to be under pressure in the latest round of price talks.
Magazine prices were lately seen to recede all over Germany. The credibility of the paper industry has suffered seriously, observers note. Even as a few leading producers announced price hikes as of 1 January, large sections of the paper industry had reportedly already indicated in the fourth quarter that prices would be carried forward unchanged. In the meanwhile, producers have had to accept price cuts in view of the anticipated, progressive erosion in demand. Paper is available at short notice and machine stops of the past have had no perceptible effect, say industry reports.
EUWID respondents furthermore doubt that the capacity cuts to the tune of 400,000 t, which UPM announced for mid-year, are going to reverse the downward trend in prices. Competition and undercutting among printing companies is still reported to be very rife. They have been forced to reduce prices towards their customers without a single exception. Market players add that they see no end to the “battle for survival”.
⇒ This article is an excerpt from EUWID's monthly report on the paper markets in Germany. The EUWID Price Watch Germany for February is published in EUWID Pulp and Paper no. 10 on 6 March.
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