WELCOME TO THE CUTTING EDGE - JUNE 2022
Eugene Healy, Managing Director
Since our April issue, the situation facing the supply chain for the paper industry in our region has improved slightly with the news that the dispute at the UPM mills in Finland has finally ended after over 100 days, although it will be several weeks before regular white paper stock becomes available in the market. The devastation caused by the war in Ukraine continues to wreak damage on the European supply of paper from Russia. We have launched our recycled white paper products range, which are viewable on our webstore and we assure you we will continue to do our best to provide our customers with their preferred products where possible.
FEPE Envelope Update
With developments on the raw material markets putting the sector under massive cost pressure, the Federation for Envelopes & Light and E-Commerce Packaging in Europe (FEPE) has warned that envelopes will likely become significantly more expensive. According to the Federation, the closure of Stora Enzo Veitsiluoto mill in Finland in 2021 led to significant price increases and a shortage of envelope paper. At the beginning of this year, the strikes at UPM plants in Finland that lasted several months, further aggravated the situation and the effects are expected to continue well beyond the end of the strikes due to large delivery backlogs. “The prices for envelope paper have more than doubled at our member companies in the last 12 months. In addition, the lack of availability of paper has led to missed shifts and excessively long delivery times. Our industry is currently confronted with problems on the raw materials markets that we have not had since World War II,” a FEPE spokesperson said in a statement this week. He added that in addition to paper prices, costs for window films have also increased in the double-digit range, as have prices for paints, glues, packaging materials, energy & freight, and there is currently no end in sight to this development. According to FEPE, raw materials and freight account for up to 75% of the manufacturing costs of envelopes, and so consequently further significant price adjustments are unavoidable. “Unfortunately envelopes are becoming more expensive across the board, and it's no longer a matter of cents. We're talking about a range of several
euros per 1,000 envelopes” the federation noted. Also, FEPE noted that it will be almost impossible for manufacturers to enter into contracts with long-term price agreements, as has often been demanded by office supplies retailers and large mail-order companies. “The risks of longer term contracts are now so great that some manufacturers prefer to forgo business rather than commit to longer term prices ,” the Federation said.
"Raw material & freight account for up to 75% of the manufacturing costs of envelopes..."
Recycled White Update
Thank you for your patience and understanding and we will continue to keep you updated on all key developments and the effect on our products & prices. Our stock recycled white products are now available on our webstore, address below. To request a sample of our
WELCOME TO THE CUTTING EDGE - JUNE 2022
Eugene Healy, Managing Director
Since our April issue, the situation facing the supply chain for the paper industry in our region has improved slightly with the news that the dispute at the UPM mills in Finland has finally ended after over 100 days, although it will be several weeks before regular white paper stock becomes available in the market. The devastation caused by the war in Ukraine continues to wreak damage on the European supply of paper from Russia. We have launched our recycled white paper products range, which are viewable on our webstore and we assure you we will continue to do our best to provide our customers with their preferred products where possible.
FEPE Envelope Update
With developments on the raw material markets putting the sector under massive cost pressure, the Federation for Envelopes & Light and E-Commerce Packaging in Europe (FEPE) has warned that envelopes will likely become significantly more expensive. According to the Federation, the closure of Stora Enzo Veitsiluoto mill in Finland in 2021 led to significant price increases and a shortage of envelope paper. At the beginning of this year, the strikes at UPM plants in Finland that lasted several months, further aggravated the situation and the effects are expected to continue well beyond the end of the strikes due to large delivery backlogs. “The prices for envelope paper have more than doubled at our member companies in the last 12 months. In addition, the lack of availability of paper has led to missed shifts and excessively long delivery times. Our industry is currently confronted with problems on the raw materials markets that we have not had since World War II,” a FEPE spokesperson said in a statement this week. He added that in addition to paper prices, costs for window films have also increased in the double-digit range, as have prices for paints, glues, packaging materials, energy & freight, and there is currently no end in sight to this development. According to FEPE, raw materials and freight account for up to 75% of the manufacturing costs of envelopes, and so consequently further significant price adjustments are unavoidable. “Unfortunately envelopes are becoming more expensive across the board, and it's no longer a matter of cents. We're talking about a range of several
euros per 1,000 envelopes” the federation noted. Also, FEPE noted that it will be almost impossible for manufacturers to enter into contracts with long-term price agreements, as has often been demanded by office supplies retailers and large mail-order companies. “The risks of longer term contracts are now so great that some manufacturers prefer to forgo business rather than commit to longer term prices ,” the Federation said.
"Raw material & freight account for up to 75% of the manufacturing costs of envelopes..."
Recycled White Update
Thank you for your patience and understanding and we will continue to keep you updated on all key developments and the effect on our products & prices. Our stock recycled white products are now available on our webstore, address below. To request a sample of our
