The company has said that it is proceeding with its plans to raise prices of its woodfree coated sheets by February 2013 as announced in November 2012.
The cost increment will be between five and seven per cent and will vary according to range and grade. Sappi sales staff are currently in discussions with customers regarding the price hikes.
The company said in a statement: "In the light of further, sustained increases in raw materials, energy and transport costs, Sappi Fine Paper Europe has reviewed current margins for its graphic papers and will raise its prices where they have become unsustainable.
"Over recent months it has become apparent that the decline in indent prices for woodfree coated sheets over the last few months means that this business is now heavily subsidised and at current raw material prices is generating structural losses.
"Morever, because indent prices do not cover the cost of service involved anymore, they also undermine the fundamental role merchants are fulfilling with deliveries out of their regional warehouses.
"This must be corrected quickly and whiles Sappi will raise its woodfree coated prices generally, we will put particular emphasis on raising indent prices in order to restore a sustainable business model."
In 2011, the company closed its Swiss Biberist mill, knocking out 500,000 tonnes of Sappi's annual graphic paper capacity.
