The year started with relatively good paper demand in Europe, due to expected price decreases for 2013. The orders were put on hold in December last year to be placed in the beginning of this year instead. The first quarter of the year was characterized by capacity closure announcements, mainly in Newsprint but also Magazine Paper grades. The difficult economic situation in Europe continued and affected the advertising budgets in printed media as well as in other channels.
- The European Newsprint demand decreased by 6% in Q1 compared to the same quarter 2012.
- The European demand for SC paper has decreased by 4% compared to Q1 2012.
Coated Mechanical Paper
- Coated Mechanical Paper-demand declined by 7% in Q1 compared to Q1 2012.
Uncoated Mechanical (Improved & Others)
- The European demand for Uncoated Mechanical paper increased by 2% in Q1 compared to the same quarter 2012.
- Uncoated Mechanical Improved and Book Paper demand increased in demand while the demand for Telephone Directory Paper fell. Digital solutions are replacing the printed telephone directories.
Announced capacity shutdowns, 2 million tonnes in total
Stracel (PM 1), France, 280,000 t LWC, virgin fiber based (13-01-04)
PM 3 Rauma, Finland, 255,000 t SC-A, virgin fiber based (H1 2013)
PM 4 Ettringen, Germany, 200,000 t SC-B, recycled fiber based (H1 2013)
Mantova (PM 1), Italy, 165,000 t Newsprint (Standard and Coloured), recycled fiber based (13-02-09)
PM 1 Hylte, Sweden, 180,000 t Newsprint (12-12-27)
PM 2 Hylte, Sweden, 205,000 t Newsprint (Q2 2013)
PM 11 Kvarnsveden, Sweden, 170,000 Newsprint and 100,000 Imp News (Q2 2013)
PM 3 Hallsta, Sweden, 140,000 t SC-A (H2 2013)
PM 51 Braviken, Sweden, 200,000 t Newsprint (Q3 2013)
Announced shutdowns result in increased delivery-to-capacity ratios for newsprint
Sources: PPPC, Euro-Graph, Jaakko Pöyry, RISI, Company announcements.