Quarterly Report – July 2019

Owing stagnation in the economy, fluting and liner mills were working at 60-70% capacity utilisation rates in the first quarter of 2019. In April and May, however, the rates climbed to 80% before changes in global markets forced utilisation levels back to 60-70% once again. In the first two months of the second quarter, mills increased their recovered paper prices by 20-25% as they did not have sufficient stock to meet increased demand, but June brought a 20% decline in line with falling sales prices.

The finished paper demand trend is generally downwards for July and August but a steeper fall is expected this year, partly due to economic stagnation.

During the second quarter, once read and overissue news prices did not suffer any falls while sorted white ledger prices increased by 30%. Exports of SWL is continuing in small volumes, and imports of A4 and A5 are still averaging 30,000 tonnes per month.

As for latest company developments, Mondi Tire has closed its PM1 operation and is continuing only with PM2; investments are continuing at Hamburger in Kütahya and Kipas in Söke; and Albayrak’s fluting and liner mill has started testing and so has paced its purchases of A4 and A5.

Ekrem Demircioglu - Ekrem Demircioglu (Turkey)

Ekrem Demircioglu


Quarterly Report – July 2019