Such action is understood by many in the industry to be reactive rather than proactive. There’s also a view that this month’s price rises are no different from those last September.
Martyn Eustace, chief executive of paper merchant Premier Paper, says: “Manufacturers of uncoated papers, both graphic and business grades, are particularly bullish at the moment with demand outstripping capacity.”
He adds that prices are currently rising across Europe and that the UK situation is not unique.
John Tucker, regional sales director for M-real Commercial Printing, says: “We are sure that customers will be aware of the challenges faced by the paper industry in higher production costs and the need to ensure future profitability.”
Juha Yrjönen, senior vice president, sales, of M-real Consumer Packaging, adds that the increased costs, especially in energy, are putting an enormous strain on the cartonboard industry. He says that since the beginning of 2004, both oil and energy prices have nearly doubled and that these increases are also behind the soaring costs of transport and papermaking chemicals.
Keith Chapman, managing director at independent Scottish papermaker Curtis Fine Papers, says the price increases are driven by increases in electricity costs, pulp costs and wage increases, and adds that, in this sense, the increases are cost-driven as previous increases were.
UPM’s president and chief executive officer Jussi Pesonen says that the ongoing industry transformation is not over. “The forest industry’s business environment will continue to be challenging.”
Whatever the reasons for the increases, the one thing that all seem to agree on is that there is every chance that the current across-the-board rises will stick.
SNAPSHOT OF PRICE RISES
M-real Zanders Autocopy carbonless copy range increased by 6% on 1 January
M-real UK Commercial Printing Woodfree coated and uncoated papers increased by 7% from 12 March
Mitsubishi HiTec Paper matt coated inkjet papers to increase by 7% from 1 April
Curtis Fine Papers announced a 5% increase last week (ending 16 March)
