In interim reports, both Stora Enso and Sappi reported that demand for coated and fine paper grades had improved in the second quarter compared to earlier in the year.

Stora Enso reported profits for the second quarter down by 43% year-on-year to 38.9m (e58.5m), while sales for the period were stable at 2.1bn.

Stora Enso chief executive Jukka Hrml did not reveal whether the firm planned to increase prices, but said: "The economic recovery is still moderate... price increases are expected in fine paper during the second half of the year."

Sappi profits for the quarter grew by 15% year-on-year to 33m ($60m), with sales for the period up 12% to 653m.

In the firm's report, Sappi chief executive Jonathan Leslie said: "As price levels for coated paper remain at low levels, achieving higher prices remains key to improving our profitability."

He confirmed that there had been increased demand for coated papers, but said that "price levels in the [previous] quarter remained at cyclical lows".

Story by Josh Brooks