Arandell Corporation

Blake Hutchison, Director of Purchasing

We 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 21^st and on any existing orders shipping on or after June 1^st

 Appleton Coated:

• CFS products (all finishes)
  1. $2.00/cwt
• Effective with orders shipping on or after June 1^st

 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 1^st

 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 1^st

 Evergreen:

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st

 AbitibiBowater:

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st

 Kruger:

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st

 UPM:

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st

 FutureMark:

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st

 Catalyst

• CGW products (all finishes)
  • $3.00/cwt
• Effective with new orders entered and all existing orders shipping on or after June 1^st 

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.

Related posts:

1. Paper Price Increases Announced
2. More Domestic Paper Price Increases Announced
3. Paper Market Predictions for 2010
4. Axing Myths About Controlling Paper Costs
5. Things are getting tight!