Page 24 - BOSS Today Issue 6

Sixty-second interview

PAPER

CHASE

We spoke to Tim Bowler, Director of the National Association

of Paper Merchants (NAPM), for his views on the price of paper

What’s behind the recent inefficient paper-making
paper price increases machines and some fall in
after a long period of manufacturing capacity. Also,
stability? the weakness of the pound
It was more than just stability. has created an effective
From the end of 2003 to the devaluation of Sterling, leading
end of 2009, paper prices rose some manufacturers to prefer
by just 5.9 per cent. Over the to deal with dollar-based
same period, the RPI was up countries and other parts of
22.2 per cent. So paper prices the eurozone with stronger
considerably undercut inflation GDP growth than here. These
over those six years. The price causes led to a pulp shortage, THE NAPM AT A GLANCE
increases we’ve seen in this year, made worse by China: this The NAPM has been the only
although regrettable, are the country has no real indigenous accredited trade association for
results of three main factors: pulp stocks but has 6 million paper and board merchants and
one-off problems, structural tons of new capacity. Its low wholesalers since its foundation
changes and the impact of labour costs mean that it can in 1920.
China. Even so, price levels are pay more for pulp, and it’s It is the voice of 22 companies,
still lower in the UK than in most doing so on a major scale. which together represent the
other parts of Europe. overwhelming majority of the
So pulp costs have paper merchanting sector within
Can you say more increased dramatically? the UK.
about these factors? That’s putting it mildly. I led The Association offers a
The ad hoc problems an NAPM fact-finding visit to a forum for its members to meet,
included such things as a paper mill here in the UK in June. provides education and training
major earthquake in Chile, At the end of 2009 they were courses on all aspects of paper
strikes in Scandinavia, and paying $480 per tonne for pulp: merchanting, and fosters active
so on. Structural changes – by June, their costs had rocketed links and cooperation with other
exacerbated by the recession to $920 per tonne – that’s nearly trade bodies.
– covered the closure of double.

24 BOSS TODAY | December 2010

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