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!