Following publication of the timber and paper multinational's results yesterday, the company said that the UK has an advantage in the approach it has to paper recovery.
Spokesman Ivan van Cauwenberghe said: “The UK has a very good approach in the way it collects paper as it is not mixed. Supplies from the UK are important to the volume that we need.”
Stora Enso's new newsprint machine at Langerbrugge will have a capacity of 400,000 tonnes per year and its raw material is seen as being “readily available” due to its “optimal location in Central Europe”.
When the plant comes on line in May this year it is expected that it could have a knock-on effect in the recovered paper market pushing used newsprint prices higher. But much will depend on demand and prices have weakened recently because of lower demand from newspaper publishers for material. A webcam showing construction of the new plant can be seen at: Langerbrugge.
Commenting on the market outlook, Stora Enso’s chief executive Jukka Hrml said, “In Europe demand for advertising-driven papers is stable at low levels, but prices are under pressure mainly due to oversupply. In North America demand improved from low levels in advertising-driven paper grades towards the end of 2002. This positive trend has continued thus far in 2003. The further continuation of the positive trend in North America, and indeed the outlook for global paper markets, depends largely on the outcome of the current geopolitical situation.”
Magazine grades
In other paper sectors, Stora Enso reported that uncoated magazine demand slowed down at the end of the year although prices were fairly stable. Coated magazine grades demand improved but prices declined due to tough competition. The company sees stability in the short term but some overcapacity in light-weight coated grades. The magazine grades usually use 100% virgin pulp.
The company also noted that office paper demand has weakened seasonally, but is expected to recover slightly during the first quarter of 2003 and that packaging boards and wood products demand and prices are expected to remain stable.
Subscribe for free