BJ Ball reviewing paper prices

BJ Ball is currently reviewing its paper prices, in consultation with its suppliers who are dealing with higher costs to produce paper stocks.

Pricing pressures are impacting all paper merchants in Australia, Australian Printer reported earlier this week that Spicers will be increasing costs to paper, as of April 10.

Craig Brown, chief executive, BJ Ball says, “We are in discussion with a number of our suppliers who have flagged increases to BJ Ball. Specifically, increases in the costs of pulp, energy, chemicals, and transport.

“We are reviewing this, and will revise our position shortly, letting our customers know what is happening.”

Paper accounts for roughly 30 per cent of the costs for printers, meaning a hypothetical 10 per cent increase would add 3 per cent to the cost price of a job.

BJ Ball rival Spicers has announced increases in the range of 5-8 per cent for some of its grades beginning April 10.

KW Doggett has yet to return calls to Australian Printer, but will be going through the same review. Between them the three supply more than 80 per cent of Australian commercial paper.

In addition ink supplier Flint Group has said that the costs of raw materials for ink have risen, due to a short supply of chemicals following increased Chinese environmental standards and factory fires, alongside the same transport concerns as paper. As a result, ink prices for printers may be on the rise at the same time as paper.

Raw materials to offset blankets are also rising, however Mamdooh Sidhom, managing director, National Blanket Converters, which supplies to 60 per cent of the offset printers in Australia, says “Our manufacturers have told us that the costs of materials for blankets would be rising, however we have not increased our prices at all. A strong Aussie dollar against the Euro is helping us with our European manufacturers, and we have no plans to increase costs to customers.”

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