In a letter sent to its customers, UPM said that energy prices remaining at historically high levels due to the implications of the current critical geopolitical situation was continuing to have a material impact on its production costs.

The company said that to ensure the profitability of its operations with the expectation that the energy, logistics, and raw material costs would remain high for “a longer period”, it has been forced to transfer a previously announced surcharge currently applied to News, SC, and/or CMR grades into a permanent price increase of £70 per tonne of paper.

This will be applicable for deliveries as of 1 July 2022.

In another letter, UPM said it is increasing prices for coated mechanical sheets, woodfree coated, and uncoated paper deliveries by a minimum of €100 (£85) per tonne, depending on the product.

It said the price increase would also include the separately applied energy surcharge, which it has decided to transfer into the pricing for its woodfree paper grades.

This increase is effective for deliveries as of today (10 June).

Separately, Burgo has said it will increase prices on its coated and uncoated woodfree paper product range by up to 6%, effective as of 1 July.

According to EUWID Pulp and Paper, the increase will be applied in all European and overseas markets.