BoSacks Speaks Out: The Price of Paper is on the Rise

BoSacks Speaks Out: With all the talk and emphasis on the digital future of information distribution, it's a sobering thought to remember that most of our information distribution business models still revolve around dead trees. I say sobering because the price is on the rise yet again. Did you put these increases in your budget?



I have received the following information from several sources and felt it prudent to send it out to my entire list rather then just my Paper and Pulp list. I believe that editors, marketers, publishers and all my other readers should be equally aware of the dynamics of our industry. Paper is just one of the many factors that constitute the entire puzzle of publishing, but ask your production people how much of the manufacturing budget paper takes up? I believe that you will find that it takes up more of your budget than you thought possible.




"The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it."

Adam Smith (Scottish philosopher and economist, 1723-1790)



SAN FRANCISCO, June 7, 2007 (RISI) - At least three more North American coated paper suppliers have told customers to expect price increases on coated freesheet (CFS) shipments next month, contacts said. Sources said Sappi, Stora Enso and West Linn were among companies hiking prices to remain competitive with NewPage, which told customers earlier this week that it would increase prices $60/ton ($3/cwt) on CFS sheets and rolls effective June 7. Additionally, sources said Stora Enso told customers the price increase would apply to orders of coated mechanical paper as well as to CFS shipments.





From Sappi:

Effective for new orders with a confirmed delivery date on or after June 7, 2007,

Sappi Fine Paper North America is increasing prices US $4.00 (CAN $4.25) per

cwt on the following sheet products:



1. HannoArt sheets (all basis weights and finishes)

2. Magno sheets (all basis weights and finishes)

3. Private label sheet and sheeter roll programs





Effective for new orders entered on or after June 7, 2007, with a confirmed

delivery date of July 8, 2007, or later, Sappi Fine Paper North America is

increasing prices US$3.00 (CAN $3.25) per cwt on the following web products:



1. Aero web (all basis weights and finishes)

2. Opus web (all basis weights and finishes)

3. Somerset web (all basis weights and finishes)

4. Flo web (all basis weights and finishes)



From NewPage

SAN FRANCISCO, June 6, 2007 (RISI) - US coated paper supplier NewPage told its customers today that it would hike the price of various grades of coated freesheet sheets and rolls by $60/ton next month.



The increase is effective June 7 on orders with a confirmed delivery date of July 2, or July 16 depending on the product. In a letter to customers Newpage cited rapidly increasing chemical, energy and transportation costs and the need to achieve sustainable earnings levels.



From StoraEnso:

Please be advised that Stora Enso will increase transaction price 7% on the following

coated and uncoated web products.Effective with orders placed June 15 and all shipments July 1, this increase applies to:



PolarisPress (all versions)

SolarisPress

StellaPress

TerraPress

CapriPress (all versions)

ConsoPress (all versions)

MagniPress (all versions)

SuperiorPress

ExoPress

Lux Cream

Lux

Classic

Effective with orders placed June 15 and all shipments July 13, this increase applies to:



Arbor Web Plus

Arbor Web

Productolith

LumiArt

Orion

Excellence

MediaSet

NovaPress

All Private Label products

The 7% increase applies to all gloss finish products. For all other finishes, recycle fiber

content and covers, apply the appropriate differentials from the new gloss price.


From West Linn:

This letter is to advise you that West Linn Paper Company will be increasing prices on all Sonoma®, Capistrano®, Nature Web®, Nature Plus® and any other related private label products by $3.00 per cwt (US). The price increase will be effective on orders placed as of June 7, 2007, and on any existing orders shipping on or after July 2, 2007, regardless of order date.