Ovid Bell Press is working to contain the price of paper as 2018 turns out to be a tough year for the paper industry. In early 2018, the paper industry felt the effects of paper mills in Canada and China closing and the rising costs of pulp as supplies declined and prices increased.
Many mills closed in search of better margins or to switch to other manufacturing. Paper mills have not seen this type of change since 2001. Also, the global demand for pulp is increasing as its use has been broadened to making plastic substitute, clothing, and biomass for energy. According to Print Week, pulp’s cost has increased by $500 a ton in 2017. Increased costs of transportation and environmental crackdowns also play a part in the price increase. These effects are rippling through the paper industry affecting manufacturers and consumers.
On June 7, the PRINT (Protecting Rational Incentives in Newsprint Trade) Act was proposed by representatives and has the potential to drastically improve the paper industry. Currently, import taxes on Canadian paper supplies are at an all-time high for American businesses, resulting in the highest prices for newsprint in the past five years. Tariffs are impacting printing and publishing businesses making it hard for them to control paper price increases for their customers. If the act is passed, import taxes of up to 32% on Canadian paper would be suspended and a 90-day study would be conducted by the U.S. Department of Commerce on the economic health of the paper and newspaper industries.
With the recent news of paper costs increasing, Ovid Bell Press is working with its vendors to keep prices low. Rising costs are affecting all grades of paper resulting in the solution being greater than just downgrading. Ovid Bell Press works smarter and harder for its clients, because keeping their best interests in mind is the main goal.
For more information on the cost increase for paper, check out the following articles: