Prices put pressure on suppliers

13 August, 2018 by
FMCG Business
Steve Nicholson, Director at CottonSoft.

Paper merchants in Australia have announced price rises of between 3%-8%, citing increases in pulp, energy costs, shipping and the depreciation of the Australian dollar. This will be the third price rise this year with Australia’s three largest paper merchants predicting more are on the way.

Alternative uses for pulp as well as mill closures across the globe are changing the dynamics of paper manufacturing and supply. “The increases in global pulp pricing show no signs of letting up, with all of our key suppliers remaining under enormous pressure to review their pricing into this market,” Ball & Doggett’s State Manager NSW James McGrath advised customers in an email.

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Steve Nicholson, Director at CottonSoft comments: “It is vital that a balance be struck between global pulp producers around the world and the paper and tissue industry who heavily rely on pulp to create paper and tissue-based products essential to the retail industry. Over the past year, the heavy demand for pulp has resulted in a substantial price increase that has negatively affected producers and many retail customers across New Zealand. This price pressure is forcing many paper companies across New Zealand to not only absorb internal costs from a weaker NZD and freight through fuel tax increases.

“The Tissue industry will have to pass on the pulp price increases through finished product at some stage,” says Nicholson.

CottonSoft is a New Zealand operated and managed tissue converting company, manufacturing and distributing leading brands of high quality toilet and tissue paper products throughout New Zealand.