Signs are pointing towards an imminent increase in kraftliner prices. Many suppliers informed their customers that they planned to charge £35/t more starting in April. EUWID sources described the market as stable, although kraftliner is said to be by no means in short supply in the UK at present.
Manufacturers said that demand remains decent in the UK. Conversely, buyers provided very mixed feedback. Some were confident that prices would move higher soon as the market had been relatively tight in recent months. Yet, others emphasised that higher prices would be hard to achieve given the risk of an overly large gap between kraftliner and recycled containerboard prices. What is more, American manufacturers reportedly had no plans to raise their prices.
Different producers also had mixed views. Some are convinced that kraftliner must become more expensive and stressed that the upcoming longer downtime for maintenance projects at various European mills would curtail supply further. Others noted that buyers were putting up strong opposition and that suppliers would likely have to back down when it came to the date from which higher prices should apply.
⇒ This article is an excerpt from EUWID's monthly report on the paper markets in the UK. The EUWID Price Watch for the UK for March was published in EUWID Pulp and Paper No. 12 on 20 March.
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