German Hygiene Paper Producers Fail to Raise Prices

 

Hygiene paper producers supplying the German market are very satisfied with their capacity utilization, according to a EUWID, Germany, report. "We were well positioned in the first half of the year," a source said in the EUWID report, noting that growth was achieved in both volumes and sales. The main growth driver in the consumer tissue segment in Germany is said to be the branded business, the report notes. There was more pressure in the private-label brands segments, EUWID added.

 

However, the earnings situation was described in the report as "not very uplifting." An attempt by a Finnish manufacturer to raise prices for its tissue paper products by 8% during the second quarter of 2014, it pointed out, had not been successful. "In Germany, in particular, we are faced with a tough customer front," one producer said, noting that price hikes (if they could be implemented at all) would at best be marginal. Consequently," he added, "the cost pressure was increasing."