Paper prices predicted to peak

Hot on the heels of rising input costs overseas Australia is now bracing itself for a round of price rises on heatset web coated papers.

Sappi Australia is flagging a rare price rise in reels of its magazine and catalogue grades. The world's largest producer of coated paper has already lifted its prices in Europe and the USA and is currently contacting the local customer base to inform them of the impending price hike.

According to Tim Schafer, managing director, Sappi Australia, the price rise is inevitable following an increase in input costs, including wood, chemicals, energy and a tightening of supply. The sector has not had a price rise for a number of years. The price rise is expected to be general across the sector and will impact on magazines and catalogue printers.

The USA is currently feeling the full impact of the situation, with many magazines expected to be paying up to 25 per cent more for paper. Publisher Malcolm Campbell told media that this would ultimately result in one thing: the death of many magazines.

"You're going to see a lot of icons going down if paper prices go up that much," he said.