German paper industry doubts effectiveness of energy price cap

Germany’s paper industry is currently in talks to thrash out prices and terms for deliveries from January 2023 onwards. It is not unusual for buyers to be seeking price cuts. They believe that paper mills’ production costs are in the process of falling. Along with any relief on the raw material front, buyers have expectations when it comes to the steps envisaged by the German Government to contain the surge in energy prices. They believe that subsidies granted by the German Government and the EU should cushion the spiral in energy costs for companies, thereby contributing to energy surcharges being ditched and underlying prices for printing and writing paper falling.

Paper industry insiders are putting the dampers on these hopes. After all, they doubt that the aid planned to date will provide adequate relief for paper manufacturers….

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