UK: Negotiations begin on publication paper prices

Buyers want further price reductions for newsprint and magazine paper.

Negotiations for new prices and delivery terms as of January 2021 have started in the UK newsprint market and they are taking place under exceptional circumstances. In November, demand did not recover any further following its collapse in the spring and some recovery later on, and demand remains considerably lower across Europe than the corresponding production capacities. The UK still seems to be one of the European markets suffering most from the pandemic-related drop in demand. While demand across Europe is reported to have declined this year by around 23 percent up until October, the figure for the British market is roughly 5 percentage points higher.

Against this backdrop, customers are calling on paper producers to further reduce prices in newsprint contracts for the first half of 2021. While European paper producers conceded that price reductions could be coming, they are also unwilling to accept the size of the cuts their customers are targeting.

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