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

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter