GHP Newsletter | September 2021

After receiving numerous communications from our supplier base—including UK and global paper manufacturers—we would like to bring to your attention the ongoing and developing market challenges which may affect the products you purchase from Grosvenor House Papers, and also those sourced from your broader network of supply chain partners.
 

Rising Gas Prices

Natural gas prices have now reached record levels and continue to rise.  This has been caused by a number of factors which have contributed to low gas reserves and production levels throughout 2021.

As energy is a crucial component in the papermaking industry, we have been closely monitoring the situation and, as of 01 September 2021, we are now incurring order surcharges from one supplier as a way of passing on some of these costs.  With prices expected to continue to rise throughout the colder months, we expect other suppliers to follow suit in the coming weeks.
 

Supply Chain Disruptions

As the market recovers from COVID-19 and adapts to new Brexit regulations, delivery has become extremely stretched, limited and in some cases unavailable.  This has been caused by many factors, including but not limited to:

• Paper mills closing down or downsizing

• Manufacturers withdrawing from UK and EU markets due to global shipping container shortages

• Delivery disruptions due to HGV driver shortages

• Paper mills converting to packaging grades, rather than fine paper and board

The situation has been further compounded by ongoing driver shortages and inflated shipping costs, which has resulted in extended supplier lead times and raised question marks over product availability.  

Price Increases

We have already experienced 3 major price increases this year in March, June and September.  Further increase notices have also been received for November 2021 and Q1 2022, and this pattern will most likely continue throughout next year.

Although these challenges are not welcome news, we appreciate the strain our suppliers are under as they recover from COVID-19, adapt to new Brexit processes, and react to other market challenges that are beyond their control.  As a result, we will be reviewing all affected product ranges in the coming weeks, and any amendments to your pricing will be communicated to you with as much notice as possible.

2022

Grosvenor House Papers implements a range of robust contingencies to ensure the continuous supply of products at fair and sustainable prices, and we are confident this will be the case throughout 2022 and beyond.        

We hope this information gives you some useful insight into the market and supply chain.