Fine paper and CCM prices spiralling higher in the UK

29 Aug 2017 − 

China’s recovered paper import regulation still unclear. Weak pound squeezing margins.

Brown corrugated case material and woodfree coated and uncoated paper grades generally cost more in August than they did in July in the UK. Strong demand and good workloads allowed producers to achieve their price goals for the most part on the recycled corrugated case material and kraftliner market.

However, it was the necessity caused by chronically low prices and high costs that prompted woodfree coated paper manufacturers in particular to set about their task of invoicing more with the required dedication.

Several export prices for recovered paper have receded from the peaks seen in recent weeks and months, but remain high. The absence of final, detailed rules about exports to China is creating uncertainty at times.

Weak pound squeezing producers' margins.
Companies mulling over more price hikes in autumn

The weaker pound Sterling in August was causing headaches for producers, especially in those sectors of the market where imports play a significant role. Manufacturers aim to compensate for this effect soon. Therefore, different companies are considering raising fine paper prices again in September or October.

However, the chances of publication paper prices changing much before 1 January 2018 are thought to be slim, with the exception of open contracts for the fourth quarter.

This article is an excerpt from EUWID's monthly report on the paper and board markets in the UK. The EUWID Price Watch UK and the corresponding market report for August are published in EUWID Pulp and Paper issue 35/2017 on 30 August.

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