Although the increase is much need by manufacturers, some buyers have expressed concern that the move could still be too soon.

The South African fine paper producer said it intends to raise prices in September.

The increase it said "should be supported by a continuously strong growth of worldwide demand for coated fine paper".

Sappi said the reasons for the increase were down to price increases in raw materials, energy and logistics.

The increase will be the second to be applied by Sappi this year, after it announced an increase of 7% in April for its coated woodfree grades in sheets and reels in Europe (PrintWeek, 11 March).

A fellow manufacturer in the mechanical coated sector said it was considering an increase of between 7%-8% itself in the autumn.

"We are in great need of this while today's price level is simply not enough," said a source.

One magazine paper buyer said he appreciated that everyone was fairly desperate for an increase, and thought other manufacturers could follow.

"At some stage price rises have to be successful. They (Sappi) have picked the right time in that September is a busy time of the year," he said.

"I think it's a gamble on Sappi's part that the market will tighten as much as it would hope by September.

"From a publishers perspective we are only just starting to see an improvement. There's still overcapacity in the market and I think it's just a bit too soon."

Story by Andy Scott