Tuesday, 11 May 2010 10:30

Sappi to increase prices of coated fine papers by at least 10%

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Input costs have continued to rise further in the last months as a result of pulp, chemicals and oil prices all going up substantially, with the weaker Euro exacerbating the effect. This is hitting both manufacturing and distribution costs and is reducing margins on Sappi’s coated fine papers to unacceptable levels, despite the selling price rise implemented by Sappi as from march 8th. There is no sign of these rising cost trends being reversed in the coming months.

Sappi will therefore implement a further price increase of at least 10% on its coated fine paper grades. Prices for these grades in Europe have not yet recovered from their all-time lows reached at the beginning of this year and are still low in world terms at a time of brisk order intake and increasingly high operating rates. We expect operating rates to remain strong for the foreseeable future.

This price increase will apply to woodfree coated sheets and reels for deliveries as from 1st of June 2010 onwards.

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