Germany: Prices for fine papers slipped further in June
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After sellers had already conceded more price slippages in May, the negative trend for coated and uncoated wood-free papers apparently intensified in June. The spring price round has petered out. An early summer slump is doing the rest. Prices for A4 copy paper in C quality in particular are crumbling in the face of low-priced offers from overseas, but almost all fine paper commodities are now affected.
Against this backdrop, measures to restrict capacity are being implemented time and again, such as extended shutdowns around the holidays or running machines at reduced speed.
The mood in the printing business is also depressed and the outlook is bleak. Print advertising continues to decline and order volumes are falling. The poor business situation coupled with high costs is putting many companies in financial difficulties, especially as the cost burden cannot be passed on to customers. There are also complaints about price lists that have to be constantly updated, with many mourning the quarterly prices that have now mutated into a discontinued model. Longer fixed prices are no longer in demand. Manufacturers don't want them because they want to react quickly to positive influences and hope for a reversal of the negative price trend, while buyers, on the other hand, are banking on further price reductions in the near future.
Paper mills also have to cope with small margins in an intensely competitive environment and make energy-related changes. New paper machines are currently not an issue in the graphic arts segment in Europe. Observers are calling for improved capacity management and further closures are urgently needed to compensate for falling sales and stabilize the market
