Germany: War in Iran Further Drives Up Prices for Fine Papers

After some players had already announced surcharges in February, all major German paper wholesalers were forced to implement their own price adjustments in the first weeks of March. These are increasingly being justified by the war in Iran, the consequences of which are noticeably driving up energy and transportation costs. Production costs are rising. And fuel prices, which in some cases are triggering additional “war surcharges” from logistics providers, are weighing on the entire value chain. Some players also report rising costs for chemicals, dyes, and fillers, which further increase production costs. The economic situation is also prompting advertisers to cut back, with spending on commercial printing dwindling, which could put downward pressure on demand for paper.