Nippon, Mitsubishi P&W Paper Price Hikes

Japan's Mitsubishi Paper Mills (MPM) and Nippon Paper Group (NPG) have both announced large domestic price hikes for their graphic paper ranges, effective on shipments from April 21. In both cases the hikes have been announced at ¥15/kg, which is equivalent to about $161/tonne. In MPM's case, the hikes cover uncoated and coated fine paper and lightweight coated paper. NPG's announcement covers the same grades, as well as ultra lightweight coated paper. NPG ascribed the need for the increase to conditions since the March 2011 earthquake and tsunami, which had a considerable impact on domestic graphic paper production. It heralded in a boom in imports and a big drop in graphic paper prices, which it is now moving to correct to a level it considers sustainable. MPM also cited the impact of imports on its business, as well as the cost of raw materials and fuel. Prices for graphic paper grades in Japan have fallen by up to 9% since March 2011.