Paper Prices on the Rise!

It has just been announced by the major paper manufacturers that there will be a price increase on various freesheet, offset and commercial printing grade papers that takes effect this month! The immediate increase is an additional $2.00 per CWT (hundred-weight) on offset paper. This translates to an additional $.30/M on a 60# 8 1/2 x 11 one sheet letter. Envelopes should generally not affected by this increase since wove sheets, rather than offset sheets are used most of the time.

In close concert with the above announcement, North America’s two largest coated paper producers are also planning an increase that will begin in early October, although the amount has not been solidified. While coated stocks do not comprise a significant percent of most direct mail programs, the increase will impact brochures, self-mailers, calendars, and collateral materials that are produced in bulk.
It has long been conjectured in the industry that buyers accustomed to the cut-rate prices they’ve been enjoying due to the global economic downturn will eventually see prices rise again and this is the first such indicator. Reasons stated by the mills for the increase range from a general increase in commodity prices brought on by anticipated economic recovery to a weak U.S. dollar. We also expect future capacity reductions to impact pricing, as it has in the past, as well. Stay tuned for more details as they develop!