Price Hike On Paper Rising Up To 20%
7th March, 2022

Have you heard about the latest news on paper?

As we all are aware that paper is a versatile material with many uses, including printing, packaging, decorating, writing, cleaning, filter paper, wallpaper, book endpaper, conservation paper, laminated worktops, toilet tissue, currency and security paper and several industrial and construction processes.

 

Did you know?

The most recent news to this is the current production capacity and product availability turmoil in the paper market.

In the UK, one paper industry expert said the situation was “as bad as it was in 1995-96”.

 

Why is this happening?

As many of us are aware Russia began a full-scale invasion of Ukraine on 24 February 2022, in an escalation of the Russo-Ukrainian War that began in 2014. The invasion is the largest conventional military attack in Europe since World War II.

Due to the Russian invasion of Ukraine it has negatively affected the supply of raw materials used in packaging throughout Europe. “Global supply chains are already hurting and stressed because of the pandemic,” said Laura Rabinowitz, a trade lawyer at Greenberg Traurig. She said the effects would vary for specific industries and depend on the length of the invasion, but the impacts would be magnified because of an already-vulnerable supply chain.

UK manufacturers are facing a sharp rise in costs as the Russian invasion of Ukraine undermines the progress made towards fixing global supply chains before the conflict broke out, economists have warned.

 

Summary

These challenges that the whole paper market faces continue to make even the basics of forecasting and ordering stock challenging.

Furthermore, the immediate issues around the UPM strike, non-European capacity being diverted away from Europe and transport disruption do not have short-term solutions on the horizon to improve the situation. 

In addition to this many wholesales companies have made the decision to order no further product from Russian Paper mills, evidently this will bring extra complexity to maintaining product availability due to the outbreak of war.

 

Net Result 

Unfortunately, due to this price hike, we can confirm Monday 7th March that our ‘spot bought’ WX range and our Q-Connect 80gsm will increase by 20%.

I would also like to highlight that going forward, we will not be able to offer the high level of consistency of wrap on our ‘spot bought’ copier paper (WX product codes).  In addition, there may be occasions where we need to substitute our Q-Connect product for equivalent products without notice. 

We are aware that other copier paper brands that we distribute are looking at changes to maintain supply, therefore, please be aware that there will be changes to price, specifications, and product codes as to when this happens.

I would like to personally thank you for your understanding and support as we tackle this challenging period across the whole paper industry. Please be assured we remain committed to regaining our consistency of supply at the earliest opportunity. 

 

Kind Regards

Niche Office Solutions Ltd