Major paper price rises keep on coming

Paper companies are pushing ahead with more price rises next month as the price of pulp peaks.

Paper merchants around the country have forecast solid price hikes of an average of 8% as overseas mills put orders on backlog. Following the Chilean earthquake and the closure and downtime of mills in Europe, printers can expect to pay considerably more for paper from August. This follows a number of increases earlier in the year.

The rises are universal with all merchants contacted confirming their intention to put up prices. PaperlinX Merchanting has informed its customers that a price increase will be effective from 16 August, and will consist of:

• Coated Paper & Board: +5-10% (Korean Coated will be the highest increase);
• Uncoated Papers & Boards: +8%;
• Carbonless Paper – sheets: +5%;
• Specialties: +5% and Others: +2-5%

Ian Harry of Focus Paper confirmed that his company was in a similar situation, with increases between five to eight per cent slated for the same month. Harry also blamed the rising cost of pulp as being responsible for the increases.

Simon Doggett, managing director of KW Doggett, told Print21 that his company was "under the same pricing pressures and will be similarly increasing prices amongst most grades.” Doggett expects that the effective date of these rises will be in late August.

These increases follow on from earlier price rises in this year, which were also a result of the cost of pulp due to disaster in Chile.

Pictured: The below diagram (courtesy, Pulp & Paper Edge) demonstrates the rising cost of pulp.

 

The price of paper is also being affected by the global downturn, which has caused mills,especially in Europe to cut back on production. It is expected that pulp prices are nearing a peak, but are still very high and likely to remain so for some time to come.