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M-real to hike prices again with labelstock and flexible paper rises

Paper giant M-real has announced further price rises, this time for label and flexible packaging materials.

The Finnish group said that it would increase prices by between 5% and 6% for one-side coated label and flexible packaging papers that are produced at its Simpele mill in Finland and its Zanders Gohrsmuhle mill in Germany.

The increases will come into effect for all invoicing on the papers from 1 October, the company said in a statement.

"The increase is due to the continuin escalation of costs in paper manufacturing and distribution," it said.

M-real has been one of the key players in the ongoing upward trend in paper and board prices, and last month announced that it was planning to shorten payment terms and increase kraftliner prices.

Today's announcement is the latest in an ongoing trend for raw material price rises both from paper mills and plastics producers.

Just last week, high raw materials prices were blamed for the collapse of carton printer CPC Packaging UK, while plastics suppliers Ineos Nova and Dupont announced price rises for September.

The pricing situation has also hit profitability at converters who have had difficulty in passing on the increases to customers.