More paper price rises to come

Several merchants have outlined how the Australian dollar’s plummet from $US0.97 to $US0.65 in the space of a few months has forced them to raise prices by ten per cent this month, with further double-digit price rises on the way.

“As we implement previously advised price increases this very month, the rapid change in the value of the Australian dollar has impacted costs of stocks further and immediately,” said Denis Goodrem, a director at CPI Group. “In spite of our considered approach we must look at a second round of double digit price increases and quickly.”

“We have no wish to be sounding like ‘the tabloids’ but we are in uncharted waters and it’s clear there will be some pain in this,” said David Bull (pictured), another director at CPI. “Paper prices have increased significantly, literally overnight. The Euro, Sterling and Yen are similar in their current exchange with the AUD. We have lost ground against them all.”

Prices had started to rise across the board prior to the currency plunge, with Raleigh Paper general manager Craig Brown citing “higher input costs” as the cause. Now, the ongoing instability of the Australian dollar is causing uncertainty in the market.

“We were in a slightly surreal moment earlier this week as we assembled a portion of our monthly mill orders without a firm price against them such was the suddenness and volatility of our AUD currency,” said Edwards Dunlop Paper general manager Gordon Anthonisz. “Should there be a drop in demand for paper due to market factors it will unfortunately, still be accompanied by significant price hikes for printers.”

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