A number of leading UK merchants said this week they had received "no official request" from suppliers for
a price increase, indicating that no rises are scheduled for this autumn.
Robert Horne Group, PaperCo and Antalis all said they had not received official notification of forthcoming price rises, while another merchant said it was not aware of any price rises that would affect printers, although it has been informed of peripheral suppliers' increases for items such as boxes.
Meanwhile, manufacturer and merchant Fedrigoni UK said that it planned to freeze its prices until the end of the year having implemented an increase in the first quarter.
However, Robert Horne Group managing director Alistair Gough, warned that, ultimately, there would have to be rises at some point: "The declining returns... must require correction at some stage as cost reduction programmes alone will not restore the industry to an acceptable level of profitability."
Last year, paper manufacturers announced a series of paper price increases in response to increasing raw material and energy costs. Many manufacturers also raised prices during the first six months of 2009.
Commercial printer Formara's managing director, Freddie Kienzler, said prices did go up, but that the company was now getting reductions, which have brought prices back to where they were at the latter end of last year.
Paper manufacturer UPM UK's general manager Will Oldham said: "Naturally, pricing policy is always a hot topic and we will continue to review pricing in light of input cost changes and the imperative to preserve the financial health of the business."
However despite the predictions of a price freeze, one industry insider said printers should expect to be hit by another round of paper price increases in September and October 2009.
He said: "In terms of order volumes year-on-year, some mills are reporting a 20-30% decline. Paper merchants have de-stocked and printers' orders are well below the levels of 2007/8 from their customers."
It follows declines and losses incurred by European mills when the pound weakened against the euro. While sterling has strengthened slightly, it still suggests that last year's increases have been eroded by currency fluctuations.
Paper price rises may be staved off for now despite tough year
Printers may have a break from the perennial autumn price increases despite declining returns across the print and paper supply chain due to reductions in volume and margins, paper merchants have said.
