Prices for woodfree coated paper on the Italian market have fallen in September as a result of shrinking demand. Graphic paper producers in Italy furthermore see a problem in their customer's lack of liquidity.
Woodfree coated paper suppliers did not have much good news to report in August and September. Demand for coated fine paper had plunged in August, while stoppages and production cutbacks announced by manufacturers did little to effectively limit supply during the summer. Quoting supply and demand statistics for Italy, EUWID sources stated that the demand had dropped by up to 15% compared with August last year.
A weak August and subdued demand in September sent woodfree coated paper prices falling. Little was left of the mark-ups instituted in June and July as September came to an end, manufacturers stated. It remained largely unclear whether buyers had put additional pressure on suppliers or whether suppliers had cut their sales prices of their own volition to generate demand and retain customers.
Graphic paper producers were furthermore complaining about poor payment practices and customers' lack of liquidity. Market insiders noted the complete lack of payments and increased number of bankruptcy filings among clients in Italy were problematic.
⇒ This article is an excerpt from EUWID's monthly report on the Italian paper market. The EUWID Price Watch Italy for September will be published in EUWID Pulp and Paper no. 40 on 4 October.
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