Papermakers announce price rises

Paper giants say price rise are necessary

M-real and Stora Enso yesterday used drupa to announce more paper price increases, with rises of 6-8% planned for magazine papers.

Speaking at a presentation yesterday, M-real CEO Mikko Helander said there was no doubt Europe "urgently needs price increases".

M-real has raised the price of its coated magazine papers between 6-8% due to continual cost inflation and unsatisfactory profitability. Helander said it was "very obvious" that there would be more industry consolidation.

Stora Enso has also revealed price increases of between 7-8% on magazine papers at this year's drupa. Sales director for publication paper Hans-Joachim Riesen said: "We're increasing the price of magazine paper because consumption is very high."