Prices are to rise massively in new contracts from January.
Like other publication paper markets in Europe, the UK is currently experiencing a dramatic change in the price environment. Virtually all publication paper manufacturers have unveiled unprecedented extra premiums in addition to the price hikes set out in quarterly contracts. Raw material and energy surcharges of varying magnitudes are to apply from October or November onwards, regardless of whether contracts are still in effect. Quite a few paper producers will institute two separate instalments, with others eyeing just one. That being said, some deliveries are reportedly still taking place at prices agreed from 1 July onwards.
Moreover, paper manufacturers want to put up prices dramatically with effect from 1 January 2022 in cases where there were relatively small or no price markups in the fourth quarter. Manufacturers claimed that they had already inked contracts at much higher prices and are confident of having all agreements signed and sealed by the end of this year.
This article is an excerpt from EUWID's report on the paper market in the UK.
Find the EUWID Price Watch UK for November 2021 in EUWID Pulp and Paper issue no 47/2021, which will be available to our e-paper and print subscribers as of 24 November 2021.