UPM's announcement that it will slash its paper output capacity by closing machines including a newsprint PM at its British Shotton Paper mill has left its traces on the British market.
These shutdowns will give a slightly different slant to publication price negotiations. Manufacturers are hoping that they will have a better chance of stabilising prices, while buyers still think that more than enough paper is on the market.
The closure of the machine at Shotton is already being foreshadowed on the recovered paper market. Recovered paper suppliers are already wondering how they will make up for the loss of this buyer. Mixed newspapers and magazines (1.08/1.09) and several other types of ordinary recovered paper grades became cheaper in November.