Paper Industry Raises Specialty Paper Prices One After Another: "Limit Reached for Accumulated Cost Burden"

Hansol Paper Raises Fancy Paper Prices by 5%

Moorim SP Also Hikes Specialty Paper Prices by 8–9%

Cost Pressures Mount Amid Russia-Ukraine War and US-Iran Tensions

Industry Targets Specialty Paper Market for Easier Price Increases

The paper industry has begun to raise prices for specialty papers one after another. This move is driven by a judgment that it has become increasingly difficult to absorb the accumulated cost increases caused by a higher cost structure resulting from the prolonged Russia-Ukraine war, as well as additional pressures on energy and logistics costs due to heightened tensions between the United States and Iran.

Finished pulp products are stacked at the Murim Paper & Pulp factory. The Asia Business Daily Database

According to industry sources on August 3, Hansol Paper raised the price of its fancy paper brand "INSPER" by about 5% starting with shipments released on July 1. This price hike was broadly applied across various fancy paper product lines, including rough-gloss paper, colored paper, patterned paper, pearl paper, and speckled paper. Moorim SP also notified its partners that it would raise prices for special functional papers, such as colored origami paper and ice cone paper, by 8–9% for shipments released from July 20.

The biggest factor behind this round of price increases is the cost burden that has accumulated over several years. Since the beginning of the Russia-Ukraine war, international energy prices and ocean freight rates have surged, structurally increasing manufacturing costs for the paper industry. In addition, the US-Iran conflict this year has further intensified geopolitical uncertainty in the Middle East, again raising the burden of electricity and logistics expenses.

Raw material prices have also shown little sign of stabilizing. According to the Ministry of Trade, Industry, and Energy, the price of southern US mixed hardwood kraft pulp (SBHK) last month was $760 per ton. Though this is somewhat down from the high of $780 per ton reached in April when tensions between the US and Iran peaked, prices remain elevated.

Some analysts say the paper industry prioritized the specialty paper market because price hikes are comparatively easier to pass on here. Specialty papers, considered high value-added products, feature enhanced colors, textures, and functionality compared to regular printing paper, and are used in publishing, packaging, stationery, and industrial applications. Unlike printing paper, specialty papers place greater emphasis on product differentiation and technical capability, and because functionality matters more to buyers, price resistance tends to be lower.

In contrast, the printing paper market is marked by fierce price competition due to the presence of many suppliers, and price fixing sanctions imposed recently by the Fair Trade Commission have further heightened the pressure on price adjustments. Therefore, experts have interpreted the industry's recent moves as a defense of profitability by focusing price increases on the specialty paper market, where there is more room to maneuver.

However, the consensus within the industry is that higher specialty paper prices are unlikely to have a significant immediate impact on consumer prices. This is because paper costs account for only a small portion of finished product prices, and most price increases are reflected only in some of the packaging or printed material production costs.

An industry official said, "The immediate impact on consumer prices will likely be limited, but if the upward trend in costs persists for a long time, the cost burden could increase across industries that utilize premium packaging, such as cosmetics and food."

This content was produced with the assistance of AI translation services.