Event

Print margins hit as fourth paper price rise in 12 months looms

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Print margins will take another hit next month as paper merchants gear up for what will be, for some, their fourth round of double-digit price rises in the past 12 months.

Printers will be left facing price hikes of between 5%-10% from 6 September, as the merchants pass on the latest increases from the mills.

Paperlinx merchant PaperCo has said it will increase the price of all its products by up to 10% as of 6 September, while sister company Robert Horne will follow suit with rises of 7%-10% across "most products".

PaperCo blamed its suppliers, which have imposed the price increase in response to rising input costs, "especially raw materials and transport, [which] have reached exceptional levels unseen for a number of years".

This message was echoed by Mark Gilbert, divisional director of commercial print at Robert Horne, who told customers that the merchant was doing all it could to "resist the pressure from [its] manufacturers".

Andy Buxton, managing director of Howard Smith Paper Commercial Print, warned of price rises of 10% across commercial print products delivered on or after 6 September, at which time both Elliott Baxter and Denmaur Independent Papers will also raise prices.

Mike Gee, managing director of Denmaur, said: "We haven’t yet finalised with suppliers what these increases will be, but we are doing everything we can to fight it."

Antalis McNaughton confirmed it will be increasing prices by 7%-12% dependent on the grade, with effect from 13 September 2010.

According to Robert Horne Group, the sharp rises in paper prices in the past year are the culmination of a decade of oversupply in the fine paper industry.

This led to "huge losses for papermakers" and resulted in large swathes of capacity being taken out of the market to bring supply inline with demand.

With strong demand now having returned and supply more in balance, increases in input costs and problems affecting supply – such as the Chilean earthquake – can no longer be absorbed by the market.

SEPTEMBER PRICE RISES
Antalis McNaughton 7%-12% dependent on grade
PaperCo 10% on all products
Robert Horne 7%-10% on most products
Howard Smith Paper Commercial Print 10% on all products
Denmaur Independent Papers unconfirmed rise
Elliott Baxter 5%-10% depending on the grade

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