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France: Higher raw material costs force paper producers to take action on prices

France: Higher raw material costs force paper producers to take action on prices

2021-05-07


Due to rising cost pressure, above all for fibre, suppliers of paper and board have announced or are implementing price increases in France.

In the corrugated case material segment, producers selling to the French market have the advantage of strong demand, which enabled higher prices to be implemented for nearly all grades in April. Further price increases have been announced for the coming weeks and are being negotiated.

The picture is similar on the cartonboard market in France, where cost pressure, longer delivery times and brisk demand led to rising prices.

Major cost pressure is also being felt by producers of woodfree coated and uncoated papers as well as publication paper. However, their markets have experienced an accelerated decline in consumption since the outbreak of the coronavirus pandemic and even extensive capacity closures have not been fully able to offset the impact of this downturn.

Prices for publication paper are established until the end of the first half-year in most cases. For the second half of the year, though, producers will likely be looking to raise prices significantly in France and across Europe.

There were some price hikes for woodfree coated papers in April and somewhat smaller mark-ups were also introduced for the woodfree uncoated paper grades. Producers are aiming to raise their prices once again in June or July.

After rising for some time, prices for packaging grades of recovered paper plateaued in France in April, not least due to an uptick in supply. By contrast, the upward price trend continued for deinking grades, whose buyers complain that recovered paper is too scarce or too expensive.

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