Germany: Still no light at the end of the tunnel on the label paper market
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There was no change in the completely unsatisfactory order situation on the German label paper market in the 3rd quarter. "July was the worst month ever for us," one producer told EUWID. The capacity utilization rate was just 65% and the paper machines were being run in "stop and go mode", he said.
As a result, the pressure on prices in the 3rd quarter was high, but the information on markdowns for wet-strength and caustic-strength label papers 70-80 g (roll) was not uniform. Corrections were also made for the non-wet-strength grades. Negotiations for the 4th quarter were only in the early stages at the end of week 39. Some market participants expect further price adjustments.
As it is further stated to EUWID, due to the many production line shutdowns, fixed costs for label paper manufacturers have also become significantly more expensive, which, together with falling prices, has caused margins to melt away sharply.
