Newsprint producers will have to make capacity management a priority in order to match output to falling consumption, EUWID respondents say. Producers explain they need higher sales prices in the second half of the year.
Newsprint producers describe the present order intake from the German market as “reasonable” or “fine” even as they are aware that delivery figures will see a renewed fall again this year. For standard newsprint, observers expect a Europe-wide drop of up to 5% even though market players hope for stimulus from the football World Cup and the Summer Olympics. Temporary downtime which manufacturers announce time and again is not enough, industry insiders say, while no announcements for further capacity cuts have been made to date.
Pressure on prices prevails under the current circumstances. Low prices are being quoted for grades from Eastern Europe, which may serve as a signal, market experts say as they expect prices to recede in the course of the current year unless capacity management is not made a priority.
Manufacturers still aim for slight mark-ups in the second half of the year citing higher costs while they plan to focus more on overseas exports. Exports were already seen to increase significantly in the first quarter. On the other hand, many Eastern European producers are also said to be very active in Asia which is reportedly making prices and the markets less attractive.
⇒ This article is an excerpt from EUWID's report on the German paper market.
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