Rise at Fall of paper costs

Rise at Fall of paper costs

Soaring energy costs across Europe have already seen domestic customers hit hard in the pocket, and all at a time where the colder winter months have already begun to set in. With no immediate end in sight, and fears that the price of wholesale energy is set to rise even further, manufacturing has too fallen prey to this energy crisis. Take, for example, the recent closure of CO2 Manufacturers and CF Industries, which resulted in shortages of poultry, pork, baked goods, beer and fizzy drinks, that relied heavily on government intervention to reopen plants in order to alleviate supply chain issues.

This problem has unfortunately spread even further across Europe, where, energy prices have risen to unsustainable levels, forcing paper manufacturers to introduce energy surcharges on top of their normal paper production costs. Hitting an industry which has already seen a 10% increase in prices, this additional 10% surcharge per tonne of paper manufactured is a massive blow to end users and is one which will be expected to be adopted by all mills within the next few weeks.

BPIF Chief Executive, Charles Jarrold, told Printweek that printers were already dealing with the most severe cost pressures seen in a decade, with prices for ink, plates, blankets, paper and logistics all on the rise.

“The sector has been remarkably resilient throughout the pandemic, reflecting the experience, knowledge, and diversity of the sector. Unfortunately, however, as I noted at the time of the recent National Insurance increases, there are acute cost pressure across the economy as a whole, and our sector can’t escape that”.

Coupled with general supply difficulties across Europe, and delays on larger paper makings, it’s going to be a challenging time.

Looking ahead, Statex will continue to clearly communicate progress with customers. We will endeavour to provide the best competitive deals available, using materials which we can readily acquire. It’s best to advise our clients to begin considering all future projects, and even bringing forward paper purchases, ahead of any subsequent price rises or supply difficulties.