South African paper manufacturer Sappi announced its intention to instigate its second price increase in 2013 of 5%-7% across its coated fine paper grades. The increase is due to come into force on 1 April, and follows a similar price hike across its graphic papers, which came into effect in January.

Meanwhile, Arjowiggins Graphic announced that it was also to increase its wood-free coated papers price by £40 per tonne, equal to a rise of approximately 6%, from 1 April. Maine Gloss, Chromomat and Satimat, which are exclusively distributed in the UK by merchant Elliott Baxter, will be affected by the increase.

Arjowiggins Graphic national key account manager Julian Long blamed rising costs of transport, chemicals and energy as the key factor in driving up paper prices.

However, some stockists are still waiting to be officially notified of the price increases, although the consensus was that once the rises are made official, merchants would be forced to pass on the full impact of the increases to buyers.

Scott Barclay, director of procurement at Paperlinx, which stocks Sappi’s Hello, Club and Core Uncoated, all of which would be affected by April’s proposed price rise, said: "In reality, if a mill does put up their prices, we don’t have the ability to swallow these price increases into our margins. We just don’t operate at that type of profit level. The likelihood is that we will have to follow suit."

He cited the example of Arjowiggins Creative’s decision to push up the price of its premium quality paper Conqueror by 3% at the beginning of last month, which the merchanting group had been forced to pass on to customers.

On the upside, Metsa Group confirmed in its recent year end results that it did not anticipate any "significant price changes" to its uncoated paper and that coated paper prices were expected to fall in the coming months.