Merchants and mills are blaming a fall in capacity following the closures of loss-making mills as well as rising energy and pulp costs for the latest hikes.

Manufacturers and merchants including PaperCo, Antalis, Sappi, Mitsubishi HiTec Paper and Curtis Fine Papers are informing customers of rises of between 2.5% and 8%.

Alistair Gough, managing director of merchant group PaperCo, said: “We have been expecting this increase since late 2006 when manufacturers started to confirm that costs of pulp, fuel and energy were still preventing them making adequate returns.”

The UK paper merchant is planning to raise prices on all its grades by between 2.5% and 8% from 26 March.

Merchant Antalis has said that as of 26 March, it will increase prices on coated and uncoated papers by 6% to 8%, and speciality grades by 3% to 6%. Carbonless products will go up by 5%.

Managing director Henry Cubbon said: “The increase is due to the costs of pulp and paper manufacture which have been driven higher by increased energy costs.”

Toby Marchant, Paperlinx regional president for the UK, Ireland and South Africa, said: “Demand across Europe is out-stripping supply for the first time this decade… There shouldn’t be any other increases before September.”

Curtis Fine Papers the independent Scottish papermaker, is raising prices by 5% this week, while German speciality manufacturer Mitsubishi HiTec Paper will also increase the cost of its matt coated inkjet papers by 7% from 1 April.

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