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Paper prices rise again as mills blame higher production costs

Printers are to be hit with further paper price hikes after merchants warned customers to expect increases of up to 8% in the coming months.

Mills have recently announced increases as a consequence  of continually rising costs and a policy of closing capacity in order to push prices up.

Paper merchant PaperCo will increase prices for specialty grades, envelopes and all other coated and uncoated papers and boards with effect from 3 March.

The firm said the input costs used in mill production have increased significantly. Pulp prices, for example, have increased by 24% over the past two years, while starch costs have increased
by 40% over the past 14 months.

One industry insider said: “The fact is there is still a major gap between the true cost of making a tonne of paper and the price that people are willing to pay for it.

“Spiralling energy costs, which are now seen by consumers domestically, and raw material costs mean many producers are making substantial losses."

Leicester-based merchant Antalis has written to customers concerning price increases of between 2-8%, which will come into effect from 11 February.

In the letter, Antalis’ national sales director Bruce Munro confirmed the firm  had been advised by suppliers that coated, uncoated, graphical board and cut-size qualities are expected to be raised by 6-8% from 3 March.

Martyn Eustace, chief executive of Premier Paper, said: “The impetus for price increases is pretty well established. Mills’ energy costs have risen sharply and the worldwide demand for wood for construction is increasing the price of pulp.”


PRICE RISE OVERVIEW
ANTALIS
Fine writing/text and cover  4-5%
Security  4%
Packaging  2-8%
Screen and sign  4-7%

PAPERCO
Speciality grades, envelopes, coated and uncoated papers and boards  4-8%

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