European fine paper manufacturers are feeling the pinch of a steep rise in costs, especially energy.
Portugal's The Navigator Company announced a new price hike of up to 8 per cent for deliveries of uncoated woodfree paper from 1 November. On top, the company will also apply an extraordinary surcharge of €50/t for all products and brands for deliveries from 1 November onwards for, at least, the next months. The surcharge would be regularly reviewed and adapted to market conditions, the company explained.
In a separate announcement, Italy's Burgo group informed about a price increase of minimum 12 – 15 per cent for all its graphic paper grades, due to "continuously and unpredictably rising input costs as energy, chemicals and logistics". The price increase will be applied immediately for new orders and in all markets, the company said.
Sappi Europe announced a surcharge of €100/t to be applied to all invoices dated from 25 October 2021 until further notice. The surcharge would be applied in addition to any current and future price increases as the company "can no longer absorb the full extent of the unprecedented increase in energy prices,” Sappi explained.
Last week, fine and specialty paper group Lecta announced a 12-14 per cent price hike for all new orders of woodfree coated paper due to the risings cost of gas, electricity and chemicals. In addition, Lecta would implement additional energy cost-related surcharges which are subject to review each month, the company said.
The recent announcements by the paper industry are also having an impact on companies along the paper pipeline. Paper merchant Igepa therefore announced an energy cost surcharge of €150/t on all its deliveries. Igepa said that paper producers started to invoice a surcharge in the same amount, in part as early as of 25 October 2021 and thus for deliveries already ordered and confirmed. Igepa's surcharge would be valid until further notice and levied in addition to the already announced prices increases in the fourth quarter 2021, the group explained.
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