Price Negotiations on the German newsprint market drawing to a close

Thursday, Mar 31, 2016

EUWID respondents report a price increase for coldset newsprint paper in six-month and annual contracts in Germany, but say manufacturers still cannot be satisfied with current price levels.

It appears that the marathon negotiations in the coldset newsprint segment in Germany are about to come to an end. With numerous contracts now signed and sealed, other market participants often wanted to conclude their agreements around Easter. In most cases, the new prices are valid retroactively to 1 January.

Paper manufacturers are not really satisfied with the outcome of the price negotiations. However, in many cases the industry was able to create possibilities to improve prices later in the year, either by signing half-year contracts or by including a special clause into annual contracts that, under certain circumstances, allowed for price (re)negotiations.

Although price movement in summer is considered unlikely, observers do not rule out the possibility of mark-ups in the fourth quarter of 2016. Not only is this the period with the strongest demand, they say. By the end of the year, the announced capacity reductions will also be approaching.


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