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Price hikes put catalogues under pressure

Thursday, 21 May 2015
By Print21
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One of the strongest growth areas of print is facing new challenges as the price of catalogue paper continues to climb.  Paper manufacturer Norske Skog blamed the rising costs of raw materials for its second price hike in just six months.

Norske Skog (Australasia) announced an increase of A$30 a tonne in Australia for all its Vantage LWC range of products, with the increase taking effect on 1 July 2015.

The main driver for a price increase is based on the increasing costs of imported raw materials used in the production of LWC. The increased prices will also better align Australian prices with LWC prices in other global markets,” said a company press statement.

In January 2015, less than a year after launching its locally produced Vantage brand from the Boyer mill outside Hobart, the local manufacturer increased prices by 3-5% on new orders.

Experts warned of increased upward pressure on prices as the Australian dollar continues to fall.

“They’re caught in a bind because import prices for pulp are up 15-20 percent,” said an industry insider. “But Norske Skog now control close to half of the market and that makes them a price marker, so they’ve done very tidily.”

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