Further to my posting in April, Kimberly Clarke have now followed most other paper manufacturers and posted a 5% price increase on all proffesional products as from the 1st of September, but are these increases really justified?
Serious Earthquakes across the world have seen pulp prices increase dramatically over the last few months. Market leader in environmental paper products and owner of the Katrin Brand, Metsa Tissue report that some 7% of the global pulp market will be shutdown in the medium term. While SCA claim that it’s nearer 10%.
Connect Hygiene the company that controls the Kruger brand in the UK, report that pulp prices have risen from £450/mt to £600/mt since January 2010. They further predict that prices will continue to rise to in excess of a £1000/mt, a level not seen since 1995.
Georgia Pacific says that long term currency imbalances between Sterling and the Euro show no sign of improvement.
Other factors in the sharp up turn in pulp prices is the ever increasing demand from the flourishing Chinese economy and the effects the harsh winter in Europe has had on pulp production.
With prices due to rise by up to 10% in the next week or so, my advice to any contract cleaner or large end user of paper hand towels or toilet roll’s is, "Get yourself a supplier that’s going to guarantee prices for the medium term at least, because this market is on an upward spiral."
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