Due to an unusually warm winter globally, it is a difficult time to harvest pulpwood and demand for pulp is high. This means that rather than prices fluctuating each month as they usually do, they have been steadily increasing since September 2017 and are predicted to continue doing so into the middle of 2018. In addition to this, there has been a distinct shortage of paper reels in the market, which means that every manufacturer is on strict allocation. With paper making up 75% of the cost of our products, this is a big issue – but not one that our customers need to be concerned about.
Graph showing the pulp price increase
These unprecedented changes are affecting the whole market equally and every paper converter will be experiencing the same issues when purchasing pulp for the manufacturing process. While many larger manufacturers have chosen to increase their prices in one surge by 7-10%, at Nova Tissue we’ve been able to adapt our prices step-by-step by 2-4% at a time to ensure that our customers always receive the best price for their order, despite the fact that paper makes up 75% of the cost of our products.
We want to reassure customers that we remain ready to provide the same level of service and we will not compromise our quality or cut corners by tweaking our product specifications (eg roll height, meterage, paper grammage etc).
We will continue to watch the market place with a close eye so if and when pulp prices decrease, we will be able to reflect this with our own prices. We ask that during this period, customers place their orders as early as possible so that we can continue to be reliable with deliveries and remind customers that full truck orders have a typical lead time of 4-5 working days.
If you would like to read more about how this issue is affecting the wider market, please refer to the following links: