Pulp costs putting label paper producers under severe pressure

Beer bottles with white labels
Label paper producers announce price increases
27 Apr 2021 − 

Amid strong demand and rising costs, label paper manufacturers are seeking price increases in Germany.

Label paper manufacturers have a strong first quarter of 2021 in the rear-view mirror. Much more orders had been placed than in the same stretch last year, producers said. Lead times had leapt to eight weeks as a result, with a few sources even quoting up to 12 weeks. Several factors were coming into play here. On the one hand, customers were panic-buying and filling up their stocks again at the old prices in expectation of dramatic price hikes. On the other hand, a rising number of coronavirus cases had led to shifts being cancelled and production being halted, trimming supply.

While order books for label paper had shaped up nicely, producers report facing huge pressure from the explosion in pulp costs. Energy and logistics costs had also risen sharply, they said. During March, a large number of producers had therefore informed their customers of plans to charge more for all new orders from April onwards.

This article is an excerpt from EUWID's report on the German paper markets in April. Find the complete report in EUWID Pulp and Paper issue no 17/2021, which will be available to our e-paper and print subscribers as of 28 April.

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