Prices stabilise but weak markets maintain downward pressure

摘要

Uncoated fine paper prices have failed to respond to upward pressure by a number of European producers. The market remains soft with adequate supply for current demand levels and despite announcements by mills of the need to raise prices to counter rising costs, including a pick-up in pulp prices, their attempts have fallen on deaf ears. Unless there is a market pick-up, it will require further downtime measures and probably more capacity cuts to bring about a tighter market. Competitively priced imports into the region are also making it harder for manufacturers to gain headway with prices. The recent price push has though helped to underpin end-Q1 levels with April seeing stability. The situation for coated woodfree papers is even tougher for mills with over-capacity in the market-place ensuring a lid is kept on inflation and actually putting further downward pressure on prices particularly given weak demand in the sector.