Germany: Prices for brown kraft sack paper fall significantly again in the fourth quarter
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Demand in the German market for kraft sack paper and paper sacks has not yet picked up sustainably in the fourth quarter of 2023. Paper producers and sack manufacturers are experiencing weakening demand from the building materials and chemical industries in particular.
Although business in the food sector is slightly better in comparison, it is also characterised by a subdued mood due to inflation, market participants report in an interview with EUWID. As a result, production capacities cannot be fully utilised on either side of the market. There is also talk of some paper machine shutdowns.
Companies are reporting that inventories held by manufacturers and processors are moving towards normal levels. As a result, slightly more orders are being placed again, albeit often at short notice, which would correspond to actual market demand.
Nevertheless, downward price pressure for kraft sack paper continued unabated in the fourth quarter of 2023, which, as in previous quarters, was more pronounced for brown grades than for white grades.
