Sappi declares that it is obliged to raise its prices for coated fine papers for the second time this year because current price levels were unsustainably low. After correcting its prices for coated fine paper to some extent during the first quarter 2013, following the significant fall in prices during the last months of 2012, the continuing rise in input costs means that current profitability has by no means reached acceptable levels.

While Sappi expects industry demand to improve from the low levels in the beginning of the year, the unprecedented rise in input costs (pulp, chemicals and transport costs) entirely outstrips the benefits from these price improvements and cost reduction programs so far.