U.K. Newsprint Prices Decline on Poor Demand
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U.K. producers of publication paper initially entered the mid-year price negotiations in 2012 looking to achieve hikes, but in the end they had to accept considerable reductions due to the weak euro and poor demand, according to a report this week by Germany-based EUWID Pulp and Paper.
By mid-July, EUWID notes, pretty much all of the newsprint contracts for the second half of the year in the U.K. had been signed. Although producers urgently wanted increases, they were unable to implement them. Due to the continued decline in demand and the stronger British pound, prices came under pressure and were lowered. The price reductions were even greater than those seen on the Continental European markets. Prices in the U.K. (in euro terms) have come closer to prices in mainland Europe.
Prices for improved grades were also reduced significantly even though this market is considered to be firmer than that of the standard grades, EUWID adds.
The results of these price negotiations reflect the current market situation, which remains shaped by declining paper consumption, EUWID continues. In addition, there are seasonal factors—events that should increase consumption, such as the Olympic Games in London, that have only a small effect on paper consumption in the British press sector, and will only partially offset the usual summer-related demand weakness, EUWID explains.
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