Sappi Fine Paper Europe to Increase Coated Fine Paper Prices
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Sappi Fine Paper Europe, Brussels, Belgium, will increase its prices for all coated fine paper sheets and reels by 5% - 7%, effective April 1. The company notes that after correcting its prices for coated fine paper to some extent during the first quarter of this year, following the significant fall in prices during the last months of 2012, the continuing rise in input costs means that current profitability "has by no means reached acceptable levels.
"While we expect industry demand to improve from the low levels in the beginning of the year, the unprecedented rise in input costs (pulp, chemicals, and transport costs) entirely outstrips the benefits from our price improvements and cost reduction programs so far. As a result Sappi is obliged to raise its prices for coated fine papers for the second time this year, since current price levels are unsustainably low," the company explains.
The company adds that if market conditions indicate that production downtime needs to be taken at its coated mills during this time, it "will not hesitate to do so, since the overwhelming priority is to get the business back to a sustainable profitability level."
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