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Paper price record highs globally?

Global record price highs were reported in nearly every forest products grade in 2021.

Global record price highs were reported in nearly every forest products grade in 2021. For pulp, northern bleached softwood kraft (NBSK) prices in China hit an all-time high of $1,000 per tonne on a net delivered basis in May. Other regions, including the US and Europe, followed suit in the summer. Now pulp futures may be spurring on price increases again.

To add to the printer’s woes, in the last one month or so, major paper manufacturers in India and abroad have announced that they have to or will soon increase the prices of their products.

E-commerce continues to promote strong box demand globally. North American box makers struggle to hire enough workers for the plant floor. Box plants around the world are challenged to get supply in time to fulfill orders while supply chain disruptions persist.

Those shipping challenges and soaring freight rates continue to plague the pulp and paper supply chain and feed into higher prices.

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.

The Navigator Company announced that it will increase the list price for all of its UWF (Uncoated Woodfree) paper products by 10-15 percent, effective with shipments from January 3, 2022, onwards. This price increase for paper also includes an increase of a surcharge, which the company first implemented on October 15. The surcharge will rise from 50 EUR/ton to 100 EUR/ton.

SCA today announced that it will increase the price of its NBSK (Northern Bleached Softwood Kraft) pulp in Europe by US$40 per tonne, effective January 2022. The increase brings the price of SCA’s NBSK pulp to US$1,300 per tonne.

Sappi Europe has informed its customers that the ongoing challenges with unparalleled high energy tariffs will force it to address its pricing early in 2022. “Sappi therefore announces price increases of between 10-25% dependent on the product segment to be implemented at the latest by the beginning of February 2022.

This necessitates further increase in price of USD 100/MT for woodfree varieties,” APP said in a statement. Thus, the applicable price for woodfree for sheet paper above 70 gsm for February 2021 order intake will be USD 870/MT. In a statement issued on 2 February, Shandong Chenming Paper Holdings announced that all of its board products will be increased by USD 100/MT effective immediately and another USD 100/MT rise will be affected on 20 February.

“This price increase is in response to costs hike pressure in pulp, exchange rate, chemicals and other direct materials,” the company said in a statement. The price rise will impact the company’s products such as folding box board, coated art board, cup stock, food packaging board and coated kraft back.

The same goes for the company’s paper grades as well. These include uncoated woodfree, coated art paper, copy paper, and white kraft paper.

It is noticed that paper prices have been increased by various paper mills globally due to unavoidable conditions.

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