The firm has announced a price rise across all grades by an average of 6% from 6 April. Managing director Steve Thomson said "continued downward pressure" on fine paper had "reached the point where the residual distributor margin is simply unsustainable".

Thomson said that this had been exacerbated by "unavoidable cost increases, particularly on transportation and labour".

"To ensure that product quality and service continue to be of the highest standard, it is necessary for Papyrus to increase its prices across all grades by an average of 6%," he said.

The Papyrus statement follows Robert Hornes announcement of an across-the-board increase of between 2% and 6%, coupled with price rises of up to 8% from both Stora Enso and International Paper from April (PrintWeek, 8 March).

The rises are being pushed by both mills and merchants in response to falling profit margins and record levels of bad debt taken by merchants.

Other merchant groups are expected to follow suit with similar rises in coming weeks.

Story by Andy Scott