New Round of Paper Price Increases Announced and Lead Times Creeping Out

Blake Hutchison, Vice President of ProcurementWe have been bombarded the past few days with price increase announcements from our North American mill partners. 

Below is a listing of which mills have announced, how much they are initially going to increase their prices, and when they will take effect:

Sappi:

Coated freesheet (CFS) web products (all finishes)

55# and up – $1.00/cwt
50# and below – $3.00/cwt
Effective immediately on new and unconfirmed orders

West Linn:

CFS products (all finishes) – $2.00/cwt

Effective with all orders placed on or after May 21st and on any existing orders shipping on or after June 1st

Appleton Coated:

CFS products (all finishes) – $2.00/cwt

Effective with orders shipping on or after June 1st

Verso Paper:

CFS products (all finishes) – $2.00/cwt

Coated Groundwood (CGW) products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

NewPage:

CFS products (all finishes) – $2.00/cwt

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

Evergreen:

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

AbitibiBowater:

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

Kruger:

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

UPM:

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

FutureMark:

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st

Catalyst

CGW products (all finishes) – $3.00/cwt

Effective with new orders entered and all existing orders shipping on or after June 1st 

In discussing these increases with our mill partners, one theme has been constant: they are raising prices to curb the continued pricing depression as well as alleviate pressures from rising input costs.  Pulp prices have been rising, and there is no more money coming in from the Black Liquor tax credit.  We will continue to be diligent and do everything we can to mitigate these increases as much as possible.

Lead times for both CFS and CGW grades are creeping out. CFS is out anywhere from three to five weeks, and some CGW grades are already out six weeks. I would encourage each and every one of our clients to get your paper orders in as quickly as possible to ensure availability. 

If you have any questions, please don’t hesitate to email me or call me at 800-558-8724

Thank you.

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