16/03/2022

I am writing to inform you of a current issue in the paper market that is affecting all suppliers in Europe and is escalating daily.

With energy costs, the war in the Ukraine, and strikes in Europe, not only has the cost of paper gone up but more importantly there is very short, if any supply.

A Recent update from our Paper Merchants details the following points.

  • Scandinavia buys additional pulp from Russia; sanctions has now prevented this.
  • A lot of paper is made in Finland, and they have been on strike since December.
  • Russia is a big supplier of trees for pulp, this has now ceased due to worldwide sanctions.
  • American/Indonesian markets do not want to supply the UK as they get a better return in their own markets.
  • Paper component increases (Energy, Pulp, Shipping, Bleaching) all costs are increasing.

Please also see below two of the latest articles in Printweek.

https://www.printweek.com/news/article/more-paper-surcharges-mill-halts-production-due-to-energy-crisis

https://www.printweek.com/news/article/fsc-and-pefc-ban-russian-and-belarusian-wood

Bates will be remaining loyal to our current customer base and will not be taking on any new clients for the supply of paper. We regrettably, also cannot supply paper to customers who chose only to purchase that product from us.

I believe there’s a few actions to implement to safeguard your continued supply. Firstly, I would send out a message asking your ‘users’ to avoid printing and if they do print, set their machines to double sided only print.

Please be assured, that my team and I are doing everything we can, but this is already affecting supply and we expect this to continue in the coming weeks. As soon as the market goes back to normal, we will of course revert to our normal position.

I thank you for your understanding and continued support.

For further information or updates please contact your Bates Office account manager.

 

Kind Regards

David Taylor

Managing Director