The closure of 1.2 million tonnes of European CCM capacity will counteract the start-up of new capacity and slow down the net growth rate to some 1 % in 2006 according to RISI.This is a vast improvement from the 5% net growth of 2005,but it will create a loose,rather than a tight,market and the latest round of hikes-announced on 1 June and designed to offset rising fibre and energy input costs-may be hard fought.
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