Nippon noted that increasing costs for imported base paper is a key factor behind its price increase. The company says there has been an underlying, upward trend in the price of imported base paper, reflecting rising prices of pulp, a key material, and other factors. More recently, imported base paper prices have been rising sharply, given tight supplies worldwide, driven by increasing demand from emerging countries, especially in Asia. As prices of polyethylene resin, wrapping materials, and fuels, etc. are also rising following the recent depreciation of the yen, the profitability of beverage cartons has been severely constrained, Nippon adds.
"It is difficult to overcome the recent rise in prices of raw materials, particularly those of imported base paper, by cost cutting alone, although we have been endeavoring to do so to date. Therefore, we have concluded that we have no alternative but to pass the higher prices on to product prices," the company stated.
TAPPI
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