Dear Valued Customer:
As communicated throughout the year, rapid cost escalation continues to be a major factor in the receipt paper market. The impacts of rising material costs, transportation, and the USITC preliminary duties ruling are clearly affecting the market in both cost and supply availability.
In the last week, the three largest suppliers have announced a 3rd price increase of 10%. The increase from Koehler and Domtar is effective on August 1st however the Hansol increase is effective immediately. Each of these suppliers cite that these cost increases are necessary to support the new market demands after the exit of Japanese and Spanish suppliers.
These increases are being validated by the current availability of supply. Iconex is working very closely with each of its suppliers to ensure that we maintain the supply necessary to serve our customers without interruption. As you may recall we implored a similar and successful strategy during the leuco dye crisis of 2018. Due to the constrained availability in the market, our ability to leverage buying power to mitigate these increases on your behalf are non-existent.
Due to the immediate market increase announcements, Iconex will be implementing price increases across all orders for receipt paper products shipped on or after August 1st, 2021. The increases will correspond with the 10% market announcements referenced above. Your sales representative will be in contact in the coming weeks to communicate the exact details.
Thank you for your continued partnership and support.
Chief Executive Officer