With negotiations about fine paper prices just around the corner, most buyers think that they will not be able to avoid paying more. Suppliers have hardly any room to manoeuvre as raw material costs are causing too much pressure.
All key woodfree uncoated paper manufacturers have now announced price increases for the German market to take effect from 1 July. These mark-ups are generally blamed on exploding raw material costs, particularly for pulp.
Supply is nowhere near as strained as it was during the last rounds of price talks. It tends to be rather plentiful for C grade A4 paper in particular. So the announced hikes are primarily cost-driven. Nonetheless, insiders believe that buyers will have to grudgingly accept the renewed price increase.