Why Are Paper Prices Going Up

It seems like inflation is impacting everything in the marketplace including paper prices.  In this Blog, we will outline some of the factors that are causing paper prices to go up.  As always, if you have any questions about printing, graphic design, digital printing or any of our other services, please contact us - www.lakeprinting.com.  Remember, if you can think it, we can ink it!

Factors impacting paper pricing

The economy has grown along with e-commerce demands

The demand for paper and paper products has gone up as the economy has grown.  Demand for packing materials in particular has grown, mainly as a result of the pandemic.  More people are buying on line and companies need packing material to meet this higher demand.  

Paper manufacturing has fallen

Paper manufacturing capacity in the United States has fallen. Several major mills have reduced their production. Georgia-Pacific, for example, scaled back operations at its facility in Camas, Washington. Others, like West Linn, have gone out of business. According to Staples, as the demand for bond paper declined, some mills that formerly produced bond switched to producing corrugated and packaging products because of the higher margins. Now the decline in bond paper production has pushed prices up for that popular type of paper.

Companies have turned to China to obtain paper, but new environmental regulations enacted there have driven up the cost of obtaining paper from that market.

Transportation costs have risen dramatically

According to AAA, the average cost of diesel today (May 19th, 2022) is $5.57 a gallon.  That's a $2.60 increase per gallon from a year ago.  Getting trucks from mills or container ships has added to the cost of paper that is then passed through to paper users.  According to multiple sources, Diesel will continue to rise in cost for the near future.  

Demand for recycled paper products

As consumer are demanding a greener environment, the demand for recycled paper has gone up and will continue to.  The cost of producing recycled paper is currently higher than paper produced from trees.

• Recycled paper has a more complex production process than brand new (virgin) paper, and those extra steps equate to more costs:
• With brand new paper, there are only 3 steps in the production process: logging, milling and distribution
• Producing recycled paper requires many more additional steps which include:
• Used paper collection and recovery process: Sorting and preparation to remove adhesives or staples that may be attached to the paper which must be removed before it can be processed
• Recycled paper must then go through pulping, and then to a de-inking facility (as most printing inks are not water soluble) to remove the ink and prevent the finished product from looking 'dirty.'
• The de-inked pulp is ready to go to a mill to be made into recycled paper.

Lake Printing is a premier FSC® printing company.  We are committed to using recycled paper.

For all your printing solutions, you can count on the team at Lake Printing to provide you with the best service and quality, that way you can focus on the bigger picture, while we handle all the details. For more information on the services we offer and to get a free quote, check out our website at www.lakeprinting.com

You Can Trust Lake Printing for Your Large & Small Print Needs

 

www.LakePrinting.com

 

6815 Hwy 54 • Osage Beach MO 65065

573-346-0600

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