More paper price rises on the way

Paperlinx and KW Doggett both confirmed to ProPrint that they would be raising prices on some of their paper grades by 5% next month, with more rises forecast for the coming months.

Paperlinx group strategic manager Rohan Dean told ProPrint that both the Dalton Paper and Spicers Paper subsidiaries would be raising prices by 5%.

“Our expectation is that there will be a further increase in June or July,” he said. “These are caused by unprecedented increases coming from our suppliers worldwide. We’ve all been affected.”

KW Doggett managing director Simon Doggett confirmed to ProPrint that his company would be increasing prices on six of their paper grades by 5%, effective 3 May.

“The increases coming from paper manufacturers are quite relentless and quite severe,” Doggett said.

“We’ll have to implement further increases in July across most products, but we’re trying to minimise the pain for our customers in the short term. Beyond June/July, we still don’t know because the increases are still coming through.”

Doggett said pulp costs had “gone through the roof” following the recent earthquake in Chile, with strikes at pulp mills in Finland exacerbating the problem.

“Paper manufacturers have been absorbing these pulp increases for the last 12 months, but it’s come to a head now, and they can’t absorb them any longer,” he said.

Dean also pointed to a rise in shipping costs and a “flow-on effect” in the Asian pulp market as driving the price rises.

“It’s going to be a tough time, so we’re trying to be as hard as we can with our suppliers so the Australian market doesn’t get the kind of increases we’re seeing in Asia,” he said. “We’re managing it as best we can.”

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