Sappi coated woodfree paper for price rise

One of Australia’s most popular imported quality sheets will increase by five percent in October.

A brief statement by Tim Schafer, managing director Sappi Trading Australia, confirmed that printers in Australia and New Zealand will be paying more from the October shipments. Soaring raw material costs and oil prices are blamed for the hike, which is been seen as part of an overall increase.

According to Sappi chief executive, Ralph Boëttger, severe input cost increases are impacting worldwide. “Globally our sales increased by 15.2 percent compared to a year ago. Selling prices in Europe were flat quarter-on-quarter, but declined from last year. We have announced price increases in Europe effective 01 September 2008 of between eight percent and ten percent in order to offset the input cost price increases.”

He predicts more cost increases to come. “Continued upward pressure on input costs remains our biggest challenge in the short term.  Further increases are expected in energy, fibre and chemical costs during the fourth quarter.”