Merchants push through paper price rises

The price rises will be in the vicinity of three to four per cent. Spicers attributes the movement to the tightening of supply across the globe of uncoated woodfree papers, with rising costs of raw material and energy leading to paper machine closures and price increases amongst producers.

Independent merchant, K.W. Doggett has confirmed it will also be increasing the price of its uncoated stocks, claiming it has suffered increases from both local and international mills. Simon Doggett, director at K.W. Doggett, says his company is currently calculating the impact of the price movements and expects to make an announcement soon on the extent of the rises.

“The price rises will simply have to stick because the merchants are beyond being able to absorb price rises from the mills, given the current pricing of the trade,” says Doggett.

Dalton Paper, the other PaperlinX merchant, has already informed its customers that it plans to raise uncoated prices by approximately four per cent at the beginning of September. Ken Bishop, general manager at Daltons, labels it as a slight rebalancing of the supply and demand curve in response to stock falling out of the market.

Tony Dargicveich, managing director of The Red Paper Group, which includes BJ Ball, Edwards Dunlop and Raleigh Paper, claims it has just been informed of price rises by its international mills. He says this is in the realm of three to four per cent and that the company intends to increase its prices in accordance with that.

Continuing its practice of being a price taker rather than a price setter, Australian Paper has declined to comment on whether it plans to raise prices.

Spicers has also indicated it expects to make further announcements on price rises of coated woodfree papers over the coming few weeks. K.W. Doggett, Dalton and the Red Paper Group have also claimed such a movement is inevitable and that they will be making similar announcements in the near future.

The increases come as increases in the price of fuel add a layer of costs to the logistics industry.