Printing paper price-fixing claims resurface

According to the leading article on the front page of the The Australian Financial Review (Wednesday 27 April) the ACCC is inquiring into collusive behaviour in the paper sector in addition to its ongoing investigation into the Amcor-Visy cardboard-box cartel allegations. No details of the investigation were forthcoming, with the report relying on unidentified sources.

The alleged price-fixing first surfaced last year in industry rumour of a complaint by major printing companies to the August round of price rises promulgated by paper merchants. The merchants were confident the matter would be dropped as the round of proposed price increases was comprehensively knocked back by the printing industry.

Although the ACCC will not comment on potential investigations, it is understood senior commission staff were assigned to check out the complaint.

The AFR report maintains the complaint centers on alleged co-ordinated price increases of imported paper from two European suppliers. As most merchants carry a similar range of Europeans stock, price rises from the mills leave them little choice but to pass them on – if they are able. As one industry (yes, unidentified) source commented – “I didn’t realise the ACCC had authority over European paper mills’ prices.”

The report of an ongoing investigation comes at a time when most merchants are publishing new price books in May, all promoting similar ballpark price rises. According to one merchant, the current round of price rises has as much to do with the increasing cost of doing business as it has with the higher cost of landed paper. He also makes the point that if there is any price fixing it must be very badly done as the cost of paper is at an historical low with many grades costing less than they did five years ago.

Part of the higher cost of paper is due to the difficulty in getting shipping containers for paper from Europe. At least one merchant has had to resort to buying bulk space in order to get paper here in time to fulfil orders.

A full report on the current paper pricing round will appear in the May issue of Print21 magazine.