Printers concerned over increasing paper prices

Printers have expressed concern at the latest paper price rises, which are set to hit the industry as the UK teeters on the brink of recession.
Printers spoke out this week following M-real’s announcement of a further price increase of 8% for its coated fine paper and magazine paper, which will come into effect in early 2009.M-real, which has already increased prices this year, said that the scale of rises so far had been insufficient and stressed the need for price increases in all of its main product areas in order to improve profitability.However, Real Digital International sales and marketing director Andy Ruddle said: "Enforced increases may simply reduce the amount of paper ordered, but there are also other solutions which will increase the pressure on mills further."Paper manufacturer Arjowiggins has also announced planned price increases during the fourth quarter of 2008. Meanwhile, UPM said that there is a need to increase paper prices in order for market prices to reflect the rise in raw material costs.Freddie Kienzler, managing director of Essex-based commercial printer Formara, said: "Clearly any price increase makes life even more difficult than it already is. However, we can’t continue to operate year after year without passing on some of our cost increases, and we can’t expect mills and merchants to either."He added that a balance between cutting overheads, increasing productivity and keeping costs down was necessary. M-real warned about the latest increase in its third-quarter results.