EU levy on CFP provokes angry response from UK print firms

Printers using coated fine paper (CFP) from China will be hit by price rises following the outcome of an anti-dumping investigation by the European Commission.

The papers are subject to the levy following a complaint by Cepifine that Chinese manufacturers were selling CFP in Europe at less than their usual price.

The UK is the largest importer of Chinese coated fine paper products, according to Cepifine, and while the duties will take effect immediately, current stocks will not be affected.

This would mean that prices of Chinese CFP are likely to be impacted from December onwards, once existing stocks run out.
Stuart Mason, managing director at commercial printer the Ink Shop, which buys the Chinese-manufactured Pacesetter range through Howard Smith argued that the EU was blocking competition.

He said: "There is a 4%-5% saving over comparable European brands. We are buying competitively from China. Where does the EU get off with this? There was competition in the market, there’s not now. The EU has made our product non-competitive. It is blocking paper from China. It’s a disgrace."

Andy Buxton, managing director of Paperlinx merchant Howard Smith Paper Group (HSPG), said: "At this stage, the company is unable to say exactly what the long-term impact will be for APP Gold East products.

"In the immediate and short-term, HSPG can assure its customers that it has significant stocks in place and that current market prices will be maintained."

Paul French, managing director of Robert Horne Group, added: "Supplies of similar materials are available at comparable prices so there are alternatives that will fill this gap as the global market makes adjustments to cope with this situation."
However, Steve Wicks, managing director of print manager Greenprint, said that SME printers would inevitably face higher prices as a result of the move.

"Less competition will lead to price increases from the EU mills and this is where SME printers may be hardest hit, as they may find it even harder to pass on further increases to their customers than the bigger printers and are less able to negotiate the increases down."
ANTI-DUMPING REGS
Provisional duties from 18 November 2010
Final decision to be made in May 2011
Provisional duty rate APP, 19.7%; Chenming Paper Group, 39.1%; all other companies, 39.1%
Dumping margin APP, 43.9%; Chenming Paper Group, 63%