The price hikes and energy surcharges announced in reaction to the skyrocketing gas prices in early March have been implemented in the paper and board markets in France. Demand continued to outstrip supply, especially for publication paper and woodfree paper, and prices reached record highs. New peaks were also achieved for corrugated case material and cartonboard, but business here had started to slow somewhat in certain areas. Recovered paper prices in France were unchanged in April, with the exception of some mark-ups for some higher grades.
Overdemand seen recently on the market for publication paper and fine paper was also related to the strike at UPM’s Finnish mills. Now that the two sides have reached agreement and production at UPM’s plants is slated to restart in the last week of April, the true relationship between supply and demand should become apparent in the coming weeks. If production costs do not rise any further in the near future, players believe the general price rally may come to an end in all segments.
This article is an excerpt from our latest market and price report on paper and board markets in France. Subscribers to EUWID Pulp and Paper have access to the full report and the EUWID Price Watch France for April 2022 from Wednesday this week.