UK Label Paper Prices Continue to Climb in 2009

Published:2021-04-16 · Industry News

In the UK, label paper prices have kept climbing since 2009, with an average increase of more than 21%, as major label suppliers hope to offset rising raw material costs and reduce the impact of a weak pound.

Label materials at Avery Dennison's UK roll materials division have risen 21% since January, offsetting the impact of exchange rate changes to a certain extent. According to a staff member at Avery Europe, in January Avery's stock-market label prices rose 6%, and in March prices were raised again by 15%. Such increases are roughly in line with exchange rate movements. The staff member noted in particular that changes in the pound-to-euro exchange rate have a major impact on UK label paper prices, because label paper sold in the UK mainly comes from continental Europe. "The price rises in 2009 come on top of two rounds of price adjustments in 2008, and all of them are aimed at making up for losses caused by exchange rate changes," he added.

In 2008, UPM Raflatac also implemented price increases, with prices for "products related to petroleum-derived raw materials" rising noticeably. However, the company has not yet introduced further price increases in 2009. "The main drivers of the price rises are the weak pound and soaring raw material costs," said Tapio Kolunsarka, vice president of UPM Raflatac Europe.

As for the surge in label paper prices, some industry professionals pointed out that this round of increases is too steep and too sudden, and is therefore very likely to drive some label printing companies out of business. Companies that narrowly escape bankruptcy will inevitably pass the higher costs caused by rising label paper prices on to downstream customers, ultimately pushing up retail prices.

——This article is reprinted from China Packaging Network (pack.cn), original link: http://news.pack.cn/show-362296.html

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