Paper Costs Increasing

Over the past year, we have seen the cost of paper from our suppliers increase significantly. The increase varies a bit from paper manufacturer to paper manufacturer. Here are a couple of snippets from articles specifically talking about price increases and some of the reasons why. With the cost of energy and the weak dollar, increases are to be expected unfortunately.

Prices take another step up
July 1, 2007 12:00 PM , By Jim Tierney
Mulichannel Merchant Online

It's not a great time to be shopping for coated freesheet paper. Nine major paper companies — Domtar, Sappi Fine Papers, NewPage, West Linn, Verso, PineBluff, Appleton, Bowater, and Myllykoski — have announced price increases of $3 per hundredweight (cwt) price for the grade. A tenth, Stora Enso North America, announced a 7% increase on coated freesheet.

Paper prices continue to climb
Jan 1, 2008 12:00 PM, By Jim Tierney
Mulichannel Merchant Online

If you thought 2008 might bring relief from rising paper prices, think again: Industry watchers say reduced demand, several mill closures, along with rising energy and manufacturing costs, have rendered paper markets extremely tight.

At the moment, Maine says, “nobody is canceling any orders — even if they don't need the paper, which could lead to some inventory building in January and February. If the market doesn't open up by February, it won't open up at all in 2008 — and paper availability will be an issue all year. We expect LWC prices to rise 14%-17% year-over-year in 2008, and the risk is that they might rise even more than this.”

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