Paper price rise solidarity – five percent hike coming your way

Across the board stock price rises from the major merchants to go ahead in the face of increased mill charges.

PaperlinX Merchanting along with CPI Paper, Raleigh Paper and Edwards Dunlop Paper have joined the other major merchants in forecasting price rise in the next few months. As reported here last week, Spicers NZ and KW Doggett are also foreshadowing price rises in the face of increased operating costs and higher prices from the mills.

Martin Fothergill, group general manager PaperlinX Merchants, confirmed the industry’s largest player was locking in rises in the region of five percent from 28 July. “Most of our mills have given us price rises, while our own cost increases must be taken on board. On an annualised basis we have seen $800 plus increases on certain stock. It has to be passed on,” he said.

Focusing on the increases in energy costs and pulp he predicted more price rises to come. This view was reinforced by CPI Paper, which has advised the market of increases in the order of five percent effective 21st July. According to David Christie, national sales manager, “ a lack of manufacturing capacity combined with higher input costs for mills is a powerful combination that will ensure price increases stick and I am confident we will see further pressure.”

Uncoated qualities and office papers (copy) are particularly affected by lack of mill capacity and high regional demand in Asia, particularly China, according to Edwards Dunlop Paper’s Gordon Anthonisz. Edwards Dunlop will be moving prices five percent at the end of July.

Craig Brown, general manager, Raleigh Paper, said their mill partners are not immune from the supply side dynamics and there is real pressure in the supply chain. “We have taken increases and they were not optional! We have advised our customers that prices will increase in July,” he said.