The London-based merchant sent a letter to clients on Friday after it received price rise letters from all the major European mills.
Sales and marketing manager Kevin Smith said: “It looks like an increase is definitely going to happen. There hasn’t been an actual increase that has stuck in the paper trade for a few years now. After Paperlinx went bust it was rumoured but it hasn’t happened.
“We have told clients that our prices will go up from 9 May but we are currently negotiating with mills for the exact amount. It’s likely to be between 6% and 8% and we’ll let clients know before the end of April,” he said.
It was widely anticipated that paper prices would rise in the wake of the collapse of most of Paperlinx UK into administration last April. Last year several mills issued price rise announcements but these were not passed on by merchants, after some offered to pick up Paperlinx’ business at its former rates. “It was a pure land grab,” said one industry source.
So far EBB seems to be the only merchant to show its hand.
Premier Paper Dave Jones said: “I can confirm that we have received price increase announcements from all our major coated and uncoated suppliers but we are still reviewing the situation.”
The UK’s biggest paper merchant, Antalis, said it is in discussions with a number of suppliers and is reviewing its position.
"We’ll be contacting our customers in due course to discuss our intention,” a spokeswoman said.
Warren commercial director John Turner said: “It’s clearly up in the air. At the moment I’ve got all the letters here on my desk. It’s a waiting game. There’s nothing to really say on it. It’s literally a case of sitting back and seeing what’s going on. We have to take an informed action, we have to make a decision if the market can handle it.
“The industry definitely needs an increase, that’s for sure.”
UK and Ireland paper division director at Stora Enso Mario di Lieto said a price increase was long overdue.
“There have been three or four European increases and there has been no sterling increase since Paperlinx went. Europe has managed to put price increases through. We’re going for 7% on wood-free coated and uncoated reels (both Cutstar and heatset) and sheets in the UK and Ireland.
“All the mills are doing it – Lecta, Sappi, UPM, The Navigator Company. EBB is going to send out a letter and then the merchants will fall in. Prices are going up to the merchants from the mills and will be going out to the marketplace.
“We’re at that pivot point we have to get that message out to the printers.”
Mitsubishi HiTec Paper, is increasing prices for reels and sheets by up to 6% for all deliveries from 3 May.
Sales director UK & Ireland Brian Garson said: "Since 2015, costs for raw materials and chemicals have significantly increased in particular due to the important changes in currencies and could not be compensated despite actions already carried out.
“In light of the market price level, this still results in an imbalance of costs and pricing. We have not increased our Giroform reel and sheet prices in the UK market for a long time.’’
Sappi’s price rise became active today, and its woodfree coated and woodfree uncoated sheet grades now cost 6% more in the UK and Ireland.
