Sappi and Flint flag more price rises
Tuesday, July 27, 2021
Paper maker Sappi and ink manufacturer Flint have both flagged the need for further price rises due to the ongoing raw materials crisis.
Sappi Europe has followed its announcement earlier this month that graphic paper prices would go up with further notifications related to sublimation and inkjet, packaging, and specialty papers.
Effective 1 September, sublimation and inkjet prices will increase by 8%-12%, as will packaging grades.
Specialty papers including coated and uncoated flexible packaging and silicone base papers are set to go up by an unspecified amount “by 1 October”.
In all cases Sappi cited the “unprecedented and ongoing rise of raw material costs, particularly pulp, chemicals and energy in combination with extremely high freight rates” which made price adjustments “unavoidable”.
Separately, Tony Lord the president of Flint Group’s Commercial, Publication and Sheetfed Inks (CPS) division, has just announced that there “seems to be no end to the ongoing raw material availability crisis” for ink makers. He warned that rising costs and reduced availability of raw materials continued to be a concern for the company.
In a statement, Flint CPS said: “During the first half of 2021 Flint CPS worked with its customer base to address the challenging market conditions, and were hopeful that moving towards the end of 2021, some stability would have returned to the marketplace.
“Unfortunately, Flint CPS is yet to see any improvements in the availability of raw materials which, coupled with the strains on global transport and logistics, continues to drive costs upwards.”
Lord commented: “Flint CPS’ operational and procurement teams continue to work tirelessly to mitigate the multiple increases that are being imposed on our business to ensure that our cost base is at its optimum, however, it is certain that as costs continue to increase in such a way, our business will not be able to absorb them in their entirety.”
Key industry suppliers have been tussling with a 'perfect storm' of issues that are impacting global trade and causing prices to go up.