The outlook for the UK paper and board market is mixed, according to PPL Research's UK demand and price forecast report.


Four key elements - economic growth, manufacturing activity, raw material and price correction - will drive the paper and board markets in separate directions during the year.


"We are predicting price depreciation in the first half of this year for most paper and board grades, except publication papers," said editor Lawrence Turk.


A weakening of "primary pulp costs" is set to hit prices for fine papers in the first half of the year, but prices will then stabilise.


European increases for mechanical grades will push UK publication papers prices up.


Graphic paper demand is set to rise by 2.5%, with the third quarter set to be one of the busiest periods.


Demand for coated woodfree is expected to rise by just over 3% for the second year running. But demand for packaging papers and boards will stay in decline as the strength of sterling against the euro hurts UK manufacturing.


The 80pp report costs 600, and provides forecasts to the end of 2001.


Contact: Lawrence Turk at PPL on 01442 232770.


Story by Andy Scott