The industry has been witnessing a surge in prices of all types of paper, which are attributed to a number of factors including the increase in basic price of the raw materials for the paper industry. Consequently, the price of the finished paper has witnessed a significant surge in recent times.
Major paper manufacturers in India and other countries have announced that they have to or will soon increase the prices of their products. These include BILT Graphic Paper Products, Century Pulp and Paper, Belgium-based Sappi Europe, Indonesia-based Asia Pulp & Paper (APP), and Shandong Chenming Paper, among others. BILT Graphic Paper Products is increasing the price of its Indian art paper grades across the country.
Industry officials have also said the global players have taken a price hike of 6-8% in the past one and a half months and the money value has also depreciated during the same period, which gives Indian companies room to hike prices. Below are few of the paper mills in US & Europe, increasing their paper prices.
SWM announces price increases of their engineered papers :
On 24 June’2021, Schweitzer-Mauduit International, Inc. today announces price increases across its engineered papers portfolio effective July 1st. The increases could be up to 15 % percent and are a direct result of the sharp and exceptional rises in raw material prices with market wood pulp costs up by 50% in the past six months.
Largely because of the COVID-19 pandemic, 2020 saw a lower-than-expected demand for wood pulp and higher inventory levels. Since Q4 2020, demand in Asia has recovered strongly, driving inflation on the domestic market and a fast decrease in global inventory levels. Supply levels have turned toward Asia, leading to one of the sharpest price increases in recent history.
In addition, polymer prices and packaging material costs remain highly volatile. At the same time, shipping companies are capitalizing on high demand following periods of congestion to leverage their pricing power, as well as providing limited visibility on freight rates and special surcharges.
Katrin Hanske, General Manager / Vice President Tobacco & Alternative Solutions at SWM, commented: “As demonstrated during the COVID crisis, SWM always gives top priority to its customers: to securing continuity of operations and supply, and delivering the highest-quality service across the world. In the past months, we have strengthened our business continuity management and made every effort to mitigate the impact of raw material price increases. Nevertheless, with no near-term relief in sight, we cannot continue to absorb those extra costs and therefore an increase in our selling prices is crucial to sustaining capacity, the quality of our services and products, and ensuring seamless supply continuity to customers. Our commercial team will engage directly with all our customers considering specific product line and account situations”
SCA to Increase Prices on Its White and Brown Kraftliner in Europe :
SCA, on 23 June’2021 announced that it will increase the prices of its white and brown kraftliner in Europe by EUR 50 per tonne. The new price is valid from August, 1, 2021.
“Driven by the continued strong market for transport packaging, the global demand for kraftliner remains high,” said Mikael Frölander, VP Sales & Marketing Containerboard.
SCA consists of five business units: Forest, Wood, Pulp, Paper, Renewable Energy, and our supporting unit Sourcing & Logistics. SCA’s forestry operations manage SCA’s forest holding with 2.6 million hectares of forest land in northern Sweden and 50,000 hectares in Estonia and Latvia.
Sonoco Announces Price Increase for Paperboard Tubes and Cores in the U.S. and Canada :
Sonoco, on 23/06/2021 announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after July 26, 2021.
“This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material which remains in very tight supply. Additionally, we continue to experience significant inflationary pressures in adhesives, packaging and logistics costs,” said Mike Thompson, Director of Sales and Marketing for Sonoco’s North America Tubes and Cores Division.
Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, textile, plastic film, and tape and specialty industries.
Greif Announces $50 Per Ton Price Increase on All Uncoated Recycled Paperboard Grades :
On 23 June’2021, Greif, Inc. announced today that it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) effective today with new orders and shipments on and after July 26, 2021.
“This price increase is in response to ongoing cost pressures in production and transportation and continued robust demand across the Greif paperboard network,” Greif said.
Greif is a global leader in industrial packaging products and services. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products.
The hard pandemic situations has affected almost every industry in the world economy including the pulp and paper industry. This has brought significant supply chain disruptions causing shortages and challenges in the industry.