Paper costs continue to rise with Sappi set to raise prices on speciality papers by 5-7 per cent from January as raw materials get more expensive.

The hikes apply to coated and uncoated flexpack papers, siliconising base papers, rigid packaging products, containerboard and label papers.

The global paper manufacturer says ‘continuously rising input costs make it necessary’ for another round of rises that follow double-digit increases to other products this year.

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Sappi earlier this month raised the price of woodfree coated sheets by 10-12 per cent and web paper by 5-7 per cent.

The news comes as the rest of the country’s merchants try to implement significant rises this month, with many grades rising by up to ten per cent, on the back of rising mill prices, mill capacity reduction, and in Australia’s case a rapidly falling dollar.

Merchants have warned that if they are unable to push through the price rises the mills may look to send their supply elsewhere.

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