Regardless of the economic indicators for 2012 which portend a turbulent year, the newsprint paper market is very nervous. Observers believe that this has to do with the restructuring measures which manufacturers are putting into place.
Raising price for next year is proofing to be difficult. On the one hand, it is yet to be seen whether suppliers will actually implement hikes of 5% and are prepared to live with lower volumes. On the other hand, it is not in the best interests of buyers to lose more suppliers in the paper market. Under the circumstances, the paper industry believes that market signals point towards an increase in prices – but not to the desired extent. The oft-cited figure of 3% would be barely enough to survive, market players remark.
