Against the background of dwindling demand newsprint producers in Europe are to take production downtime in the near future or are considering to do so.
In view of rather slack demand for newsprint and partly for magazine paper as well, manufacturers are taking steps to bring their output in line with the current state of the market. Norske Skog stated in an interview with the trade press and gave EUWID confirmation that the company is planning to cut back its output of newsprint and publication paper in the third quarter to an extent that equates to roughly 10% of its total production capacity in Europe. The focus of the stoppages is to be on newsprint and coated mechanical paper, the company said.
Other manufacturers also said that they have similar intentions, though without always being specific or making it public. Another major manufacturer told EUWID that stoppages are to be made at short notice in a period yet to be specified.
Norske Skog as well as other companies emphasise that stoppages are urgently necessary to prevent prices from crashing. "The latest sales figures from Europe reveal that capacity utilisation is around 80% so all manufacturers in Europe must carry out stoppages equal to 20% of their production capacity,” calculated a market insider.
Norske Skog added that shutdowns of machines or plants in Europe are not being ruled out either.
For the time being recovered paper prices are falling, but paper producers threaten to be squeezed between low sales prices and possibly rising recovered paper prices later on this year.
⇒ Find this article in its entirety and any associated background information in EUWID Pulp and Paper no. 25
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