The paper giant will increase the price of its flexible packaging, label, and release liner papers and boards by 6% as of 1 July in all European and overseas markets.

In April, Sappi raised the price of its coated fine papers by "at least 10%" and said it would stagger increases for its mechanical coated papers across the rest of the year.

Gregory Gettinger, director specialities at Sappi Fine Paper Europe, said: "Our first price rise has barely compensated for the extraordinary increase in pulp costs due to the severe pulp shortage resulting from the earthquake in Chile.

"The upwards trend in pulp prices is further affected by the current weakness of the euro against the US dollar."

He added that this has been combined with recent cost increases in oil-related additives, starches and wood.

"It is having a serious effect on our margins and makes our latest price increase unavoidable," he said.