Brown kraft paper supply remains very tight in Germany in early July

11 July 2018

Supply of lightweight brown kraft paper is still not sufficient in Germany with lead times stretching out to three months and more.

In early July, the supply situation on the market for brown 40 g kraft paper remains especially tense. Delivery periods are reportedly still distended, ranging between two and three months, or even longer is some cases. New customers reportedly find it difficult to procure volumes at all.

Market insiders think that the market is undersupplied due to lack of capacity. Emerging capacities that will come onstream in Sweden and Austria in 2018 and 2019 therefore created a buzz on the market in early July.

Producers said they were worried about the ongoing price increases for pulp and could therefore not rule out renewed price hikes for finished paper.