Soaring paper prices cut deep

Written on the 1 December 2010

JULY 2010

AUSTRALIAN businesses could be hit with an increase in bulk paper costs of up to 20 per cent as three global events over the last half continue to impact worldwide pulp production.

General manager of wholesalers Ed Office Products Tony Bertrand, says challenges within the global pulp production industry will continue putting pressure on local prices.

“Although the AUD/USD exchange rate has improved in recent times, the rising cost of pulp, some 33 per cent higher than mid last year, has diluted the benefit of exchange gains,” he says.

“The result of this upward pressure on the world pulp price has translated to increased costs across our paper and paper products.”

The Chilean earthquake of late February remains the biggest burden on the industry, with the South American nation contributing 8 per cent of the global pulp production.

With the recovery in Chile still underway, full production levels aren’t expected to be resumed until September and Asian export markets in particular will suffer.

They were hardly reported on in Australia, but the worst US snow storm seen in decades shut down pulp and paper mills in affected areas; while strikes in major ports in Finland will have after-effects for several months after thousands of shipping containers remained on shore.

Sharpe Office Supplies purchasing manager Gareth Jones, says a 10-20 per cent price increase is expected to be seen from the end of this month.


Latest News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

TECHNOLOGYONE OUTSTRIPS PROFIT EXPECTATIONS AS R&D SKYROCKETS

TECHNOLOGYONE (ASX: TNE) has surpassed market expectations to achieve a half-year profit after tax of $8.1 million, u...

CLASS ACTION FILED AGAINST SURFSTITCH AFTER ANOTHER EARNINGS WIPEOUT

AS ONLINE retailer SurfStitch (ASX: SRF) battles for survival following another negative earnings forecast, a $100 mi...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

Related News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter