In the field there is in fact a huge disparity between prices and vehement opposition from some buyers and a more resigned approach from others.

Some buyers have still managed to get their LWC for 660 - 670 euros/tonnes, these being the biggest buyers or users requiring only standard grades. For other buyers, an increase has already been enforced and the price of 700 euros/tonne reached.

Allowing for the price variations arising because of the type of contracts of the buyers (some of whom have guaranteed prices until June), it seems that the perilous financial situation in which many of the bigger printers find themselves is inhibiting them from benefiting from low prices. LWC on the latest Foex was 662 euros/tonnes and this is the price the biggest buyers get. Delivery for LWC is now at 5 weeks but as one buyer observed, it is possible to go on the spot market, pay a bit more and get delivery within ten days, and concluded that the level of scarcity of this grade may not be quite what the papermakers are claiming!

In terms of SC the situation is similar to that of LWC with price rises scheduled for the second quarter, with prices of around 575 - 580 euros/tonnes for financially endangered buyers and an announced increase that has caused industry specialist to smile bearing in mind that the new Myllykoski machine bringing an additional 300,000 t to a market already with good availability and deliveries possible within 5 days.

Demand for press papers was strong over the first two months of the year with overall growth of 4.9% in shipments and an excellent 7.6% leap in mechanical coated (Cepiprint figures – Pap’Argus n° 226 – page 27). The papermakers have clearly taken these good figures into account for the application of the latest price rise but what we know of March’s figures are much less good, especially in France where demand, according to our sources, is down 5%. In terms of newsprint, prices are now stable and 45g is at an average of 515 euros/tonne for the major buyers.

Strong performance in the magazine sector

According to the Magazine Press Association (APPM), magazine readership was up 2.5% on a year and 1.2% on 6 months, and across all segments: 101 titles reported growth, and 27 significant improvements.

The good readership levels are first of all those of the weeklies, up +1.5%. But this also applies to twice monthlies (+3.8%) and bimonthlies (+1.9%). Monthly publications recorded a very slight growth of 0.2%

Most of the major magazine families reported increased readerships in 2007. The information press in general and the news segment in particular, continued to grow with the boost from the presidential and legislative electoral campaigns of the beginning of the year. The readership of the four news was 6.5% higher against the total for 2006/2007 and the information press as a whole saw its readership grow by 4.2%.

The business and investment press also benefited from this favorable context and reported growth of 5.6%.