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Industry

Paper price hikes on the way

It may come as no surprise, but paper prices are set to rise again this autumn.

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Paper prices are set to rise yet again this autumn

EUWID Pulp and Paper reports: “A series of official announcements that higher wood-free uncoated paper prices are to take effect from October 1st have really caught nobody by surprise. If manufacturers get their way, buyers will have to hand over up to eight percent more. Negotiations were only slowly getting going on the German market in the dying days of August because of the summer holidays. September might bring a change because more contacts will be back in the office and business will pick up again.

“A number of EUWID contacts said that paper producers will not offer much in the way of concessions, even though market conditions have shifted to favour buyers. After all, pulp prices were not expected to remain stable for long, feared producers that are complaining about a massive burden from costs.

The leading trade bodies for the print industry have all said in the past that printers must not swallow the cost but pass them on to customers or face becoming unprofitable

“On the market for wood-free coated paper, the market leader has announced plans to charge six to eight percent more with effect from October 1st. Other manufacturers have followed suit and are seeking similar mark-ups. However, July and August did not go well for suppliers in Germany after a slow June, so observers are increasingly doubtful about whether price hikes will come to fruition.”

Over the last few months there have been a number of price increases of graphical papers. This latest hike is across the board of all the main paper suppliers causing a knock-on effect to print prices. Although the market for packaging and toiletries has grown the demand for traditional paper stocks have not. Coupled with currency fluctuations, concerns about a No-Deal Brexit and increasingly acrimonious trade disputes between the USA and China creating uncertainties it seems paper prices will only continue to rise well above the rate of inflation. The leading trade bodies for the print industry have all said in the past that printers must not swallow the cost but pass them on to customers or face becoming unprofitable.

Has the pulp and paper industries got printers over a barrel? Email your views to Harry - Harry@linkpublishing.co.uk or call me on 0117 9805 040. Or react to the story on Twitter and have your say.


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