Paper chases profit

While the various mills and paper-makers have long lamented that magazine paper prices were depressed, publishers and printers could have been forgiven for hoping that condition would continue for years. However it seems the combined effects of shutting down capacity, higher energy prices and the growing hunger for finished pulp and paper from China and India has finally done its work. Publishers have been startled to receive notes from their suppliers that prices are going up in the range of 5.5 - 7.5%. For instance, rolls of Weyerhauser's Husky Offset are going up 5.5% effective this week and many Domtar papers are going up by $3 a hundredweight. That's for people putting in orders starting this week or publications that order paper as they go; pre-ordered paper won't be affected, yet. But the ripple effect will be felt fairly soon by everyone in the business.