Demand on the newsprint market continues to experience a strong decline. In the run-up to price talks, UPM has now announced capacity cutbacks for publication papers.
The newsprint market was really not an easy one, commented EUWID sources. Current market developments pose challenges for paper mills and buyers alike. Spot prices have some distance away from customary contract prices amidst fierce competition for sales volumes. This state of affairs is translating into sizeable pricing and consolidation pressure.
In this market environment and in the run-up to price negotiations, UPM announced plans to cut its capacity. These actions could slash uncoated publication paper supply by a total of about 500,000 tpy. EUWID sources certainly think that the market will settle down, but also expect consolidation to continue.
This article is an excerpt from EUWID's monthly report on the paper markets in Germany.
Find the EUWID Price WatchGermany for September in EUWID Pulp and Paper issue no 40/2019, which will be available to our e-paper and print subscribers as of 2 October.
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