Will a paper shortage increase print prices?

There are a number of elements that could have a major impact on paper prices in the next few months, the Finnish Port strikes are over which should help. However the following comments were made in PrintWeek  (Helen Morris)

“Stora Enso said that, while it is now starting up its paper machines, full production at the mills would “only start in a few weeks”. Meanwhile, UPM and Sappi said normalised production would begin within the week following the end of the strike.

Some UK printers claim to have already been hit with paper delays, including First Class Post. Sales manager Andy Harrison said: “Some of our suppliers are struggling to obtain paper to convert into envelopes for us to overprint. However, what we are experiencing is perhaps not as much as some of the flat-sheet printers.”

He added that the company was having to offer alternative stocks.

Formara managing director Freddie Kienzler said: “We have had some grades running out, but our merchant has made them up by supplying a more expensive product at the same price. Our SRA sheets have been unaffected.”

Parker and Collinson managing director Ian Collinson said he hadn’t had any delays yet, but claimed the company could still be affected.

“We only buy from merchants, so might still be affected as there will be a lengthy supply lag,” he said.

Another printer said he had been told some merchants had run out of some brands completely.

However, Paul French, managing director of merchant Robert Horne, said although the strike had impacted its ability to get product out of Finland, it had not affected its ability to supply UK printers.

“We were in a position to continue to support customers’ requirements with very little disruption,” he said.

“In terms of what we buy from Finnish mills, we have not had a shortage of stock due to locally held supply.”

A spokesman for merchant Elliott Baxter said: “The feedback from customers suggests there are problems on stock and availability on Finnish-produced products. However, it is difficult to be accurate as we do not stock or sell any paper from Finland from either UPM or Stora Enso.” PrintWeek 26 March 2010

Perhaps now is a good time to engage with Expense Reduction Analysts to review at your print costs and avoid any possible increases.

Keith Copestake