Low prices, weak demand demand and higher input costs cause headache for many a newsprint manufacturer.
The newsprint market in Germany remains in critical condition. Industry insiders agree that prices are still under pressure.
The advertising market is not gaining traction, as had been hoped. Both newspaper publishers and commercial printers are suffering. While production costs are going up, newsprint prices remain at record lows, and printing jobs remain hotly contested. Nonetheless, buyers are certainly concerned that paper might become more expensive in the second half of 2021, at least for companies that have not entered into full-year contracts.
Sourcing recovered paper is another big headache for paper manufacturers. As experts had feared towards the end of 2020, recovered paper grades suitable for newsprint production are are becoming more and more scarce. Recovered paper prices – and thus manufacturing costs – are quickly rising as a result, calling into question the profitability of paper mills.
This article is part of EUWID's free coverage on key publication paper markets in Europe.
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