Newsprint producers attempting to raise UK prices by 10%, or £30-£40/tonne, effective July 1; the increase, which is higher than for mainland Europe, is needed due the pound's exchange rate, on top of higher costs, say producers
June 18, 2013
– Newsprint producers are attempting to increase prices in the U.K. starting July 1, by 10%, or £30 (US$47) to £40 per tonne, which is more than the price hikes slated for mainland Europe, reported Euwid on June 18.
The higher U.K. newsprint increases were blamed by newsprint manufacturers on the pound’s exchange rate versus the euro -- which has undermined newsprint prices for some time -- as well as due to higher raw material and other costs.
Some believe that the hikes have little chance of succeeding due to the continued decline in newsprint demand both in the U.K. and continental Europe, Euwid reported.
However, others believe that at least part of the increase will be implemented as downtime and capacity closures have helped firm up the market, while capacity utilization has been good despite weaker orders in May.
Price negotiations in the U.K. got under way in June. Some producers are said to be seeking to return to the price levels of second-half 2012, reported Euwid.
The primary source of this article is Euwid, Gernsbach, Germany, on June 18, 2013.