Producers of woodfree coated paper are pushing forward with their price hike plans on the German market. Announcements have been made by all major suppliers. Even buyers are preparing for increases in April.
All major suppliers of woodfree coated paper on the German market have announced price hikes. Although demand is not high – all manufacturers can reportedly deliver paper immediately – prices are said to have been forced up. In view of cost increases, especially for raw materials, producers are no longer ready to make compromises. "Take it or leave it” is the general attitude, buyers report. The situation is reportedly the same with all manufacturers since current prices do not allow for any earnings.
Even buyers who until late had doubted the seriousness of the producers attempts meanwhile believe that the hike in April cannot be avoided. That said, they are sceptical with respect to price sustainability. It is only a question of time until someone buckles given that excess capacity is a chronic problem, buyers said. Large-scale closures are necessary for stabilising markets in the long-term. Such closures are expected in the coming months. On the other hand, the closure of the 130,000 tpy PM at the Condat mill is described as nothing more than a drop in the ocean.