Sdra president and chief executive Anders Wahroln has given a strong indication that the price of pulp will come down even further.


At Sdras Skogsgarna economic associations AGM, he said the market was "yet to reach its lowest point", adding that it would be some time before really high growth figures were seen again.


A spokesman for Sdra said the company would be issuing no further statements about pricing.


"We are in the midst of a transition period in which forecasts point in different directions, with predictions ranging from gloomy to optimistic," said Wahroln.


He felt Sdras pre-tax profit of 25m (SEK 235m) for the first quarter was satisfactory despite it amounting to a 4% drop.


When the results were issued, Sdra said it would wait for the Norscan inventory figures before making any further price moves (PrintWeek, 11 May).


These have now been issued, and Sdra still has to announce its intentions.


At the AGM, Wahroln pointed to the connection between industrial production and the price of pulp, indicating that as growth fell, the price of pulp would also fall.


"Consumption of paper is linked to the general trend and our customers exercise caution with their orders, meaning that producer stocks are at their highest since 1996," he said.


Wahroln said Sdras full-year profits would depend on the movement of pulp price as the year progressed.


Story by Andy Scott