Date posted 29 May 2015

The concerning news and knock on effect of Paperlynx going into receivership is that from June 1st many of the other paper suppliers are increasing their prices by upto a massive 8%.

Sappi Europe and Lecta have both said paper rises are imminent with Seppi Europe announcing a rise of between 5% & 8% whereas Lecta announced a 6% to 8% increase. Both claim rising manufacturing and raw materials costs. However it comes as no surprise the increases come at a time when many printers are struggling to find new suppliers and being forces to take what is available since the closure of Paperlynx leaving them with little option but to burden the cost in order to keep supplies going. 

Here at beanprint we suspected this may happen and have been steadily increasing our stock holdings  at our Redditch wearhouse. Currently stock levels are running at around 2 months but that will be increasing as this paper and card void is filled and the market settles back down to a normal level and gets competitive again. 

The price of the Euro though is not helping with paper prices being considerably cheaper in Europe and we may yet see further increases in our raw materials over the coming months. Many smaller printers in the UK will perhaps be effected the worst and not able to command bulk purchasing and stock holding and be able to negotiate better deals.

2015 looks to be a telling time and a market changer for many of the on-line business's where profit margins are tight.