Paper prices are set to rise by as much as 10% from March. A weak Aussie dollar cops the blame as paper merchants circle the wagons on this latest attempt to push through a price increase, with all the major brands seemingly on the same page for once.
Currency devaluation leads the charge for the scheduled increase, with increases from external suppliers also putting pressure on importers. BJ Ball has announced an 8% increase effective March 31st, while K.W. Doggett customers should also expect a price rise of up 10.5%, depending on the product, from March 17th. Spicers has yet to officially confirm its intentions, but has indicated a similar increase is indeed on the cards.
BJ Ball has pinned the move on a number of increases from key suppliers over the past six months, an increase in ocean freight and various inflationary cost pressures, along what is describes as "sustained depreciation in the Australian dollar against the major currencies, affecting landed prices for January and Feb arrival onwards."
Speaking with Print21 Simon Doggett, managing director, K.W. Doggett, confirmed a price rise of up to 10.5%, to take effect March 17.
"No importer can ignore currency devaluation of this size. We've been landing inventory at devalued currency rates for months. Our records show that over the past 12 months the Australian dollar has devalued 16% against the US$ and 18.5% against the Euro," said Doggett.
Spicers has also indicated that it will likely also see a price rise somewhere in the region of 8-10%, although it has yet to officially confirm details or name a date.
Rohan Dean, manager emerging business, Spicers, has also laid the blame at the feet of the weakened Aussie currency, saying “We do see there will be a price increase in the market, and the deterioration of the Australian dollar is definitely a big part of it. I don't believe there is a specific date at this time."