Capacity cuts are changing the market for printing and writing paper.
In France, as in other European markets, the market balance has shifted for packaging papers as well as printing and writing papers. After massively cutting capacity for publication paper and woodfree paper over the past two years, graphic paper manufacturers are now reporting full capacity utilisation again. And as they are simultaneously experiencing dramatic increases in fibre costs and many other expenses, all producers are trying to raise their prices. Prices are poised to rise markedly in both segments from October. Spot prices for publication paper in September are already very high.
In the packaging sector, the industry is enjoying growing demand and good activity levels despite the new production capacities but feels forced to react to the rising recovered paper costs. Prices for recycled corrugated case material climbed in September and the next increase is on the agenda for October. Further price hikes are also planned for fresh-fibre grades and have apparently already been implemented. There have already been two price increases for cartonboard this year and the next one is slated to take effect for deliveries from October.
This article is an excerpt from EUWID's detailed report on paper and board markets in France.
Find the EUWID Price Watch France for September 2021 in EUWID Pulp and Paper issue no 39/2021, which will be available to our e-paper and print subscribers as of today.