The changes in the pound-euro exchange rate are on the minds of businesses in a few sectors of the British paper market. The recently weaker pound Sterling represents a sharp drop in sales revenues for producers in Eurozone countries, especially for printing and writing paper.
Most new contract prices for newsprint had been set in stone in the UK back in December, but everybody has been talking about the currency situation ever since. Paper manufacturers delivering from mainland Europe found that the pound had lost quite a bit of ground against the euro since December and had taken a large bite out of their sales revenues.
As the pound stands at the start of the last week in February, British newsprint prices, for instance, are sometimes lower than those anticipated or already charged in mainland Europe. Publication paper manufacturers are thus eyeing price increases mid-year since charging more was out of the question in the UK because of the strong pound in November and December.
Source : euwid-paper.com