M-real has started negotiations with German customers to increase the price of its woodfree coated paper.


When you make a successful product the price levels have to reflect the added value you are selling, said Aarre Metsvirta, M-real Paper Group executive vice-president.
Metsvirta said it was too early to say whether the UK market would be affected, but added that all markets had suffered from dramatic production cutbacks.


Demand at the moment in Germany for both uncoated and coated woodfree grades remains quiet.


Metsvirta would not reveal the level of price increases as he said they would depend on each contract. M-real has said that prices will have to rise to maintain profitability.