November prices for kraftliner in Germany not cut and dried yet

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Economic climate not expected to recover soon.

As the start of November, it is not yet clear what is next for brown kraftliner prices after price cuts in October. Some observers expect no change again in November since all market players are trying to get business to calm down. Others mentioned that another round of price reductions was under discussion. "A downward trend is here and cannot be explained away,” EUWID sources agree. "Things will continue to spiral lower.”

Market insiders report that surplus capacity and "very active hustling” by US suppliers in Europe - that have reportedly sometimes offered extremely low prices - have combined with reduced demand from the corrugated board industry to put massive pressure on prices. In addition, US buyers have focused more on recycled fibre solutions in the past few years. Insiders also point out that the gap between testliner and kraftliner was simply too big and unhealthy.

This article is an excerpt from EUWID's report on the paper markets in Germany.

Find the EUWID Price Watch Germany for November in EUWID Pulp and Paper issue no 49/2019, which will be available to our e-paper and print subscribers as of 4 December 2019.

Want to find out more? Check our subscriptions or test EUWID free of charge.

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