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The paper industry is going through challenging times this year, with several factors contributing to shortage in availability and price increases.

We understand that the current situation will present challenges to many of our customers, but trust you can appreciate that price changes are necessary to ensure you have a reliable supply line.  

 Shipping to the UK

Shipping costs, whilst still substantially higher than previous years, are finally starting to ease, bringing more supplier options back to the UK market. 

 Dock Gridlock

Both the Portuguese and British docks are currently affected by strike action, reducing the supply of tonnage in the country

 Market Forces

South American mills - traditionally supplying the European markets - have received unprecedented demand from North America and received higher prices for that market, resulting in normal tonnage to the UK being restricted.

 Russia's War in Ukraine

Since the Russian invasion of Ukraine, trading with 2 large paper mills in Russia has ceased, removing 1 billion reams supply from the European market annually.

 PEFC and FSC Certified

Both the PEFC and FSC certification bodies have classified all timber from Russia and Belarus as ‘conflict timber’, immediately ceasing to use these timber sources.   

 Raw Material Increases

Pulp and chemicals used in paper production, have continued to increase during 2022.

 The Big One...

Paper mills have continually faced substantial increases in energy costs during 2022.

The cost to power production at the mills is now 11 times as much as the 5 year average, with further increases continuing to be applied.

 No Notice Period

While paper mills have traditionally advised merchants of pending increases 1-2 months ahead of implementing them, the current situation has changed to extremely short notice, if any at all.

We hope this brief summary helps shed some light on the current situation and assure clients that we continue to monitor the market very closely.

Please contact us if you would like to discuss this further.

sales@polycopy.co.uk

01509 610077

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