Paper manufacturer Sappi has raised prices by eight per cent on some products, with planned further rises in Europe meaning more could be coming.

The price rise applies to woodfree coated sheets the European company imports to Australia, supplying Aussie merchants including KW Doggett and Direct Paper Supplies.

It also announced it will increase prices by eight per cent for coated fine and coated mechanical reels to its European customers from July 1, saying rising costs and falling margins have made the business ‘unsustainable’ at current prices.

Coated fine paper sheets will also rise but the timing and amount is yet to be announced.

Sappi Australia managing director John Walker says: "The decision to implement a price increase outside of Europe will be assessed market by market during the second half of the calendar year 2015".

This means it is possible Australian customers for these products could see price hikes this year too.

The company is the last major paper supplier to the Australian market to raise any of its prices this year, citing similar issues to the others.

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