Why is the price of paper going up
Rising paper prices - why is the raw material becoming more and more expensive?
Recently, there has been a significant increase in paper prices in the global market. While prices were relatively stable in previous years, this year alone a price increase of up to 10 percent could be determined.
Which influencing factors are mainly responsible for the price development?
The actual manufacturing process for paper has hardly changed in recent years. The raw materials required for this have also remained the same. However, raw material costs and logistics costs have risen sharply. This is due to the sharp rise in demand for paper in Asia and the high price of crude oil. Above all, China is consuming more and more paper and accordingly needs raw materials for its own paper industry. Packaging papers in particular are in demand there due to the growing economy. The price of waste paper also rose in line with paper prices. This is also required for paper production and has therefore been increasingly exported to non-EU countries for several years.
This price increase comes as a relative surprise for the paper wholesalers. In previous years, the market was oversaturated and prices even fell significantly in some cases. As a result, many companies shut down production and shut down factories. Accordingly, the paper industry is currently struggling to meet the demand for paper products.
Are the rising prices also affecting receipt rolls?
This change in the price level affects all industries that are dependent on paper products. Publishers, printers and packaging companies are particularly affected. Newspapers in particular are struggling with the increased prices. For example, if they had to pay around 420 euros for a ton of newsprint at the beginning of the year, it is now over 490 euros. Overall, all industries that rely on pulp are feeling the price increase.
But the price development is also partly noticeable for products such as receipt rolls. In this context, however, the increased costs for chemicals that are used for the production of certain types of receipt rolls must also be included in the overall assessment. In Asia, in particular, there has been a significant rise in the price of such chemicals, which are mainly used in the manufacture of thermal rollers.
So-called “wood-free” papers appear to be an alternative to real paper at first glance, but care must be taken. This name often hides a sham package. Because even wood-free paper contains wood. The only difference to conventional paper is the slightly different composition of the material. In the production of wood-free paper, chemicals are used to remove so-called lignin from the raw material. The wood-free paper therefore does not yellow as quickly as real paper. However, this type of paper is not particularly environmentally friendly and may even be more expensive than normal paper. Unfortunately, there are currently no real alternatives to paper that are environmentally friendly and affordable.
How will the price develop in the future?
As long as the strong demand from China continues, the price will continue to rise. Overall, you can assume that the price will continue to rise over the next few years. Because not only China has an increasing demand for paper products. There are also other factors such as:
- Generally rising raw material, transport and energy costs
- Increasing demand for paper in Europe
- In addition, growing demand in emerging countries
Companies that manufacture paper first have to ramp up their production capacities again after years of stagnation. It takes time. It may take a few years for these actions to have an impact on the paper market.
This is precisely why it is important for companies that rely on paper and paper products to keep a close eye on paper prices. This applies to publishers and printers as well as to companies that need receipt rolls, for example. For this reason, it can be worthwhile to procure a larger supply of the required paper products in good time.
Image sources: © istock.com / hxdyl; © istock.com / Embosser
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