Standard newsprint prices settled in Germany, show year-over-year decreases of 2%-3% in H1; some contracts are as long as one year, but allow partners to withdraw or renegotiate prices

Sandy Yang

LOS ANGELES , March 27, 2012 (Industry Intelligence) –

Standard newsprint prices in Germany will decline 2% to 3% in the first six months of this year versus a year ago based on contracts that recently have been settled after several months of negotiations, reported EUWID-Paper on March 27.

Most manufacturers and customers in Germany have come to an agreement on the standard newsprint supply agreements, sources told EUWID.

The contract periods vary, with some as long as one year but containing a clause allowing the parties to withdraw or renegotiate prices.

Paper companies appear to have readily agreed to the price reductions rather than preventing a crash as occurred in 2010, said sources. However, “publishers are pulling the rug from under their own feet,” noted one observer, EUWID reported.

Most customers generally commented that the agreements are in line with current market conditions and reflect the right middle ground.

Some paper industry representatives said that they were unhappy with the lower prices, noting that it would wipe out their profits and not allow them to build up reserves for necessary capital improvements, reported EUWID.

The primary source of this article is EUWID-Paper, Gernsbach, Germany, on March 27, 2012.
 

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