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Paper packaging chiefs predicted a slow upturn and highlighted flattening demand for paper packaging products on the second day of the Reuters summit in Helsinki.

International Paper's (IP) head of finance said that demand for its products had stagnated and that China, Russia and Brazil seemed to be making a faster recovery that the US.

"I don't think we've seen anything that could be called a trend other than the flat market," said chief financial officer Timothy Nicholls.

Nicholls said IP had been helped by its customers needing to continuously buy its products to fill relatively low inventories and benefited from its packaging being used for every day products.

"As long as people make things and put them in containers, there will be demand for IP's products," he said.

Stora Enso echoed the view that paper demand had stabilised but was pessimistic about how fast a recovery would happen.

"I cannot say that there is a light at the end of the tunnel based on my experience and my discussions with our customers," said Juha Vanhainen, head of the firm's publication paper unit.

Mondi chief executive David Hathorn, meanwhile, said more capacity closures were needed to improve the demand supply balance in the sector, but said the firm would not take leading role in reshaping the industry. He said the firm would be "extremely disciplined" in considering add-on acquisitions.

"It's fair to say the industry is in trouble. One has to believe that (consolidation) is on the agenda," he said.

Hathorn was echoing other paper packaging chief executives who spoke on Monday of the need for consolidation in the sector and for firms to push through price increases to take full advantage of an improving economy. Click here for more on this story.