Woodfree coated prices have not yet recovered to sustainable levels and European prices are still too low despite industry operating rates reaching maximum levels following capacity reductions over the past 2 years. We expect operating rates to continue to remain strong for the foreseeable future, but further increasing input costs have kept margins at unsustainably low levels.
We are therefore announcing a price increase for woodfree coated sheets and reels of at least 7% and for woodfree uncoated sheets and reels of at least 10% for deliveries as from the 1st of September 2010 onwards. For other Sappi grades separate announcements will follow in due course.
Sappi to increase prices of coated fine papers by minimum 7% and uncoated fine papers by minimum 10%. The continuous rise in input costs has kept the profitability for the industry at unacceptably low levels. Energy, wood and transportation costs, which form major parts of the industry’s cost base,
have recently started to increase sharply, following the unprecedented rise in pulp prices.
