A senior source at the Finnish paper manufacturer said the company would increase its prices for non-contractual business with effect from 1 October.

Contractual customers will also be hit with a price increase of the same amount from 1 January.

A senior buyer at a leading magazine printer said the earliest he had thought any rises would be announced, or be able to hold, was the second quarter of 2004.

I think it is desperation, but the market is so weak that others will have to follow suit, he said.

Another buying source said it was only a matter of time before someone made a move.

Its surprising mechanicals are making a move before woodfrees, but if it's successful theres not much doubt woodfrees will follow suit, said the source. Its not a good time as neither printers or publishers are in the best of health.

The general feeling is that any increase that takes hold would have to be passed to the end user, which could lead to an increase in magazine cover prices.