April 1, 2018
To our Valued Customers
Hansen QP is announcing a price increase on many of our sheet and roll products. As many of you might have already have heard, several paper mills have announced chapter 11 bankruptcy or closing altogether. A few of the mills are going to begin conversion to packaging materials due to the latest surge in paper products such as bags and cups. A lot of the delays for banning plastic bags and cups is our lack of capacity nationally. The Mills are looking at additional capacity to fill the need as it seems to be more profitable for them. Shortages in coated news stock are already a reality and could turn to allocations depending on the economy’s strength.
All our paper suppliers increased 3% in February and have now announced paper price increases of 5 to 8 percent for April and we are being told to expect possible 2 or 3 more increases before the end of the year. This is Coated paper, Uncoated papers, paper board materials and carbonless. As the papermills inventory get tighter so will the availability of material. We have opened floor space just to maintain a larger inventory as we are anticipating delays and/or shortages later this year.
We have provided some of the letters received from the paper mills below.
Please contact me with any questions you may have. We value your business and thank you for your continued support.
Sincerely
Mike Hansen
President
