Price rises pushed through for uncoated paper

Effective today (30 May) UK paper merchants have increased the prices of uncoated paper by between 5% and 7%.

The merchants blame a perfect storm of strong global demand, rising input prices and the weak pound for the move.

“It is a seller’s market for uncoated,” said Elliott Baxter managing director Matthew Elliott.

Demand in the Far East has resulted in Asian mills selling locally, where prices are strong, and they do not incur the transportation costs of shipping to Europe. Pulp prices have risen £70-£80 per tonne since the start of this year, while mills have also faced increased chemical and transport costs. The continued weakness of the pound against the euro and the dollar following last year’s Brexit vote is also adding to price pressure in the UK.

 “These factors have pushed the mills’ profitability and, despite our vigorous negotiations, have forced them to raise our prices,” said Antalis channel director for print, sign & display James Jarvis.  

Extended lead times, which have doubled in the past weeks from five to six weeks to 10-12 weeks, are a sign of the increased demand in addition to the price rises.

“Particularly in the more commodity product areas, we are having to work our supply chain hard to ensure we have access to the volumes our customers need so we can ensure continuity of their supply,” said Jarvis.”

This pressure is in addition to the additional impact in the UK as a result of the snap General Election.

The latest mill to announce price rises is Portuguese giant The Navigator Company, which is increasing the cost of uncoated woodfree products shipped from 1 July by 3%-5%.

Most mills announced plans to raise prices earlier this year.

“During the first quarter suppliers had been talking about the need to increase prices and throughout April we received confirmation from many of our paper producers of their intention to increase prices on uncoated grades,” said Premier Paper Group marketing director David Jones.

The increase in uncoated prices follows an across the board increase in paper prises of 5%-7% at the start of the year.