Germany's envelope, shipping bag paper demand rises, enabling woodfree envelope paper makers to push through 2%-3% price hike Feb. 1; prices for recycled envelope paper, shipping bag papers unchanged from Q4, but April shipping bag price hike planned

Debra Garcia

LOS ANGELES , April 4, 2013 (Industry Intelligence Inc.) –

Germany’s envelope and shipping bag paper demand has risen since the start of 2013, leading to converters paying woodfree envelope paper prices 2%-3% higher than the fourth quarter for all deliveries as of Feb. 1, Euwid reported April 4.

Though manufacturers had been successful in implementing the proposed price hike for the 80-gram white woodfree envelope paper, prices for recycled envelope paper and shipping bag papers VKP 3 and VP 4 remained unchanged compared with the fourth quarter.

One shipping bag producer, prompted by a sharp decline in margins and increasing rise in costs, indicated plans to hike prices by €40 (US$51.75) per tonne, effective from mid-April, across Europe.

Manufacturers reported improved operating rates, with all grades seeing order backlogs of three to four weeks and were satisfied with order inflow until Easter, Euwid reported.

However, a downward trend in envelopes was seen in the first two months of the year, with the period between October and March “usually the best months of the season,” according to one producer, who added that order intake weakens outside of that period, Euwid reported.

One action taken by the industry was Mayer-Kuvert-Network’s acquisition of Papyrus Deutschland’s envelope business division, which produced roughly 1 billion envelopes at its Ettlingen, Germany, site. Plans call for shifting production from Ettlingen to other Mayer-Kuvert sites.

Difficult market conditions have led to the insolvency filing and halting of production for German recycled envelope and shipping bag paper producer Tönnesmann & Vogel Papierfabrik Hönnetal, reported Euwid.

The primary source of this article is Euwid, Gernsbach, Germany, on April 4, 2013.
 

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