Demand and prices continue their upward trend for both pulp and paper. In almost every paper and pulp grade, tight markets and elevated costs are pushing prices higher. Supply is down and demand (versus a depressed 2009) appear up. Perhaps the most notable advanced pricing initiative is in containerboard, where producers announced $60/ton
increase for April 1, immediately after a $50/ton increase in January. Producers sight improving demand, lean inventories, limited capacity, and higher costs all create a good environment for price increases.
As reported recently in the Coy Paper releases, all uncoated paper producers for literally all free sheet uncoated markets have announced a $60/ton price hike for early May.
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I know the paper industry has been operating at an operating loss, but, too aggressive a pricing policy is dangerous. I am a small printer and I can not pass these increases along. My margins are tight and becoming tighter to taking a slight loss if I include all my costs. I would imagine that I am not alone. I am happy to report, my volume is up slightly from 2009, but not my margins.
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