European Printing Writing Paper Market Development Prospects

Although the economic situation has improved in Western Europe, market participants believe that the recovery of the printing market for writing and writing paper in the region will take some time to come.

In the first half of this year, printing and writing paper production companies have been struggling with sluggish demand, low production capacity utilization, and falling prices. They have tried every means to ease, but the demand for printing and writing paper in the first half of this year has fallen by 6% since last year. According to the annual comparison, the estimate still falls by 1%.

All wood pulp printing and writing paper increased demand due to customers' replenishment of inventory, making its demand increase by 1% in the first half of this year. However, from the perspective of the demand for various types of printing and writing paper, the overall outlook is uncertain, as compared with the same period last year. Compared with the persistent weakness in advertising business and the reduction of user inventory in the first half of this year, the demand for low-grade mechanical pulp printing paper has dropped by 3%.

The lack of demand and production capacity have been steadily increasing. This has caused oversupply in the printing and writing paper market in Europe. Although the production and operation rate of each paper mill has improved compared with 83% in the second half of last year, it still only 85% in the first half of this year. On the one hand, production companies in the European region are under pressure from rising pulp prices and rising costs. On the other hand, paper prices continue to fall in the second quarter of this year, and it is difficult to stabilize the prices of their products. Therefore, the situation is rather severe. However, among the many types of printing and writing papers, the exception is the printing and writing of uncoated wood pulp. Throughout the second quarter, production companies have tried their best to increase prices. All-paper pulp printing paper production companies also want to increase prices during this period. The result failed to succeed and could not even stop the price from falling.

In the second quarter of this year, due to the thin advertising business, the newspapers and magazines industry suffered heavy losses, resulting in a sharp decrease in the demand for low-grade mechanical pulp printing paper, and the tendency of paper prices to deteriorate. Among them, 60 grams of light-coated printing paper fell 2% again in the second quarter after falling 4% in the second quarter. Compared with low-grade coating machinery printing paper, even though its balance between production and demand is better, it cannot avoid the price drop. In the first quarter, the production utilization rate of low-grade coating mechanical pulp printing paper was 84%, while the production utilization rate of low-grade uncoated pulp printing paper companies remained at a good level of 90%. However, due to the drop in the price of light coated printing paper and the general downturn in magazines, the price of overpressed paper fell by 3.5% in the first quarter and fell by 1% in the second quarter.

In the second half of this year, market analysts analyzed that since users estimated that all wood pulp printing paper would increase the price of the wood pulp printing paper, it would have a certain role in promoting the demand for printing and writing paper. It is expected that it will be able to get out of the dilemma of the first half of the year. If the economic situation in the European region can recover further in the fourth quarter of this year and the advertising industry has improved, the demand for various types of printed writing paper will increase normally. Analysts believe that in the period from 2003 to 2004, the economy in Europe will further accelerate, and the demand for printing and writing paper will continue to grow. It is expected that it will increase by 3% in 2002, by 7% in 2003, and by 6% in 2004. With the increase in demand and the increase in pulp prices, the two favorable factors are sufficient to restore the strength of printing and writing paper. It is estimated that the price of all-wood pulp printing paper will increase in the second half of this year. (Extracted from China)