Pulp costs drive up paper prices

Domestic paper manufacturers have increased prices by 15 percent because the price of pulp, the main raw material for making paper, has increased by a third this year.

Nguyen Minh Trung, marketing director of Vinh Tien Paper Joint Stock Co, said the first consignment of notebooks sent to distributors in May had seen an increase in price by at least 15 percent.

Trung said the price increase was unavoidable since the cost of writing paper jumped from 16.8 million dong (US$913) per tonne to 19 million dong ($1,032).

“We considered carefully before increasing the price,” he said.

A business manager of a notebook making firm in HCM City’s District 6, said the prices of other kinds of papers – like Bristol and couche, which are used for making notebook and magazine covers – too went up by one million dong ($54.3) per tonne in the last month to 23.5 million dong ($1,277).

Used paper prices rose from 2.8 million dong ($152) – three million dong ($163) to 3.7 million dong ($201) – four million dong ($217).

Han Vinh Quang, general director of southern Binh Duong province-based An Binh Paper Ltd Co, said his company increased the price of corrugated medium paper from 5.4 million dong ($293) to 7.4 million dong ($402) and of duplex paper, from 10.8 million dong ($586) to 12.4 million dong ($674).

“We have to hike prices because imported pulp prices have risen to $850-900 per tonne, an increase of $200 compared to early this year.”

As a result, many small paper mills have stopped or suspended operations, hitting supply in the market.

Quang said power, water, and transport costs also went up, forcing paper manufacturers to increase prices.

Since Vietnamese paper companies depend heavily on imported raw materials – up to 50 percent – any rise in global prices has a strong impact on them.

Vietnam News

Tags: Vietnam paper, Vietnam paper prices