Paper price-rise threat

According to the Spanish carton packaging association Afco, prices of paper used for the manufacture of packaging are rising following a long period of stability. “In the case of virgin fibre paper, prices have risen 35 to 40 per cent,” said an Afco spokeswoman. “As far as paper made from recycled fibres is concerned, the minimum increases are of the order of 15 per cent.”

Afco attributes the spiralling costs to strong rises in energy prices, which the paper industry has endured as well as rises in the costs of production accumulated over recent years.

“The Spanish paper sector has so far not passed on any rises in its production costs to the price of its end products,” the spokeswoman. “Therefore we can expect to face price rises in the first quarter of the new year.”

Recycled paper makes up 75 per cent of the paper used for packaging manufacture and recovery of paper and cardboard in Spain runs at 60 per cent. “This figure continues to rise as campaigns to raise awareness of the importance of recycling this precious prime material,” said the spokeswoman.