Sappi Increasing Prices of Coated and Uncoated Fine Papers

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Sappi, reports that it will increase prices of woodfree coated fine paper sheets and reels by a minimum of 7% and woodfree uncoated fine paper sheets and reels by a minimum 10%, beginning September 1. In making the announcement this week, Sappi noted that the continuous rise in input costs has kept the profitability for the industry at unacceptably low levels. Energy, wood and transportation costs, which form major parts of the industry’s cost base, have recently started to increase sharply, following the unprecedented rise in pulp prices, it added.

Woodfree coated prices have not yet recovered to sustainable levels and European prices are still too low despite industry operating rates reaching maximum levels following capacity reductions over the past two years, Sappi continues "We expect operating rates to continue to remain strong for the foreseeable future, but further increasing input costs have kept margins at unsustainably low levels