Over the past two weeks, all the major UK merchants have informed customers of increases of between 5-8% that will occur on either 2 or 9 November.

The move is a result of the UK market reaching an "unsustainable level" for mills, as prices in the UK drop to the lowest in Europe, according to Dave Allen, Paperlinx regional president.

He said: "This, combined with an increase again in pulp prices and the continued pressure of huge overcapacity, reflects the on-going pressure this industry is under."

The sustainability of the merchant business is also an issue, despite significant cost-cutting exercises. 

Allen said: "The combined impact of volume decline and bad debt has meant we have reached a point where supporting this price increase is absolutely necessary."

Premier Paper marketing director Dave Jones said the company is operating in an environment of rising costs.

He said: "If this continues, and if commodity pulp prices continue to rise, then it is likely that there will be further price increases in 2010."

A letter from PaperCo division Rothera & Brereton said that price increases earlier on in the year had "failed to cover the continued impact of sterling's weak value against the euro".

However, in August, Robert Horne Group, PaperCo and Antalis all said they had received "no official request" from suppliers for a price increase, indicating that no rises were scheduled for the autumn.

The November price rises have been greeted with incredulity from many in the print industry.

Peter Wise, managing director of printing company Minuteman Press Bristol, said the myopia of paper merchants is astonishing.

"Running inefficient operations as some of the paper merchants do, and requiring the market to subsidise the failures of the supplier, is truly appalling."

He added that merchants should offer consistent pricing, and that as designers and printers agree prices with clients, merchants should also plan ahead.

Mark Snee, managing director at Technoprint, said the increases are unwelcome but not surprising given the UK's weak economic position, huge government debt and steep falls in sterling.

"I fear there is a lot more pain to come for our industry and we are in desperate need of some effective leadership both at industry and government levels," he said.

Other printers commented on the fact that all paper merchants are raising their prices at the same time citing different reasons.

One printer said: "It has all of the makings of a cartel. If one merchant broke ranks and didn't up their prices, they would have an immediate competitive advantage. It begs the question why no one does that."

However, this was dismissed by Allen, who said: "We are just responding to these increases as there is currently no net margin in it for us. UK paper prices are now the lowest in Europe."

This was echoed by Elliott Baxter's (EBB) sales and marketing director Chris Sandwell who added that the firm has made its decision purely on its own drivers.

"To provide unsecured credit, high stocks and express delivery, we felt the need to increase prices. What other merchants or printers do with selling prices is their own business."

See also: Paper price rises may be staved off for now despite tough year