Print volumes under threat from crashing Aussie $

Massive paper price rises and other consumables price hikes putting print pricing under the gun.

Overseas paper mills suspended processing orders from Australian merchants at the height of this month’s currency fluctuations, as they were unable to accurately price shipments. Price increases of up to and beyond 20 percent are expected to be in place by the end of the week.

According to this month’s paper industry bible, Industry Edge, list prices for most coated and uncoated woodfrees grades have increased for the third quarter… However, the dramatic fall in the value of the AUD against the USD is going to cause considerable adjustments in prices going forward.

Paper ordered under the new prices will begin to arrive in December with most paper merchants forecasting they will have to pass on the hikes straight away. So far this year paper prices have risen by around 15 percent. PaperlinX merchants increase of 8-10 percent flagged last month comes into effect from today, Wednesday15.
Increases in the prices of other printing consumables, such as plates, are also expected to follow as the dollar dives. The price of aluminium, the main component of litho plates, on the LME is expected to rise by 20 percent over the next year.

Under this kind of pressure printers are going to have to lift their prices for printing. According to Hagop Tchamkertenian, national policy director, Printing Industries, rises of the predicted magnitude in inputs have the ability to increase the price of printing by eight percent.  Higher prices for print are likely to induce customers to stick to their marketing budgets but make do with lower quantities.

Printing has traditionally been one of the first items to be hit in a downturn of the kind being predicted by the Federal Government. Higher prices for paper and consumables will only exacerbate the situation.