POS Supply Solutions Blog
Global Supply Chain & Materials Challenges
March 30, 2022 Update | February 9, 2022 Update | December 15, 2021 Update | November 22, 2021 Update | October 26, 2021 Update | September 20, 2021 Update | August 12, 2021 Update | July 21, 2021 Update | June 23, 2021 Update | May 10, 2021 Update | March 23, 2021 Update | March 2, 2021 Update | January 21, 2021 Update | January 4, 2021 Update | November 20, 2020 Update | October 21, 2020 Update
Volatility In The Market Continues, Price Increases Coming in May
March 30, 2022
The current inflationary period affecting all industries continues to drive cost escalation in the paper receipt and pressure sensitive label market. The rising cost of material, transportation, labor, and energy continues to adversely affect the market in both cost and supply availability.
The developments in Ukraine over the past few weeks have been deeply disturbing to us. The humanitarian catastrophe is of incomprehensible proportions. The war is increasingly causing bottlenecks and cost increases in raw materials, logistics capacities and energy. This situation was unforeseeable for all of us. The effects cannot be averted under any circumstances and are still impossible to assess. The developments also have far-reaching consequences for several thermal paper suppliers including Koehler, Mitsubishi, Lecta, Hansol and others. Energy costs in particular have already reached unimaginable levels.
Label demand continues to exceed all forecasts and projections and a major on-going labor dispute will place even more pressure on supply availability. The Finnish Paperworkers’ Union’s strike at the UPM Pulp, Biofuels, Communication Papers, Specialty Papers, and Raflatac units in Finland started on January 1st and has yet to be resolved.
The effect of this action is already causing suppliers to publish new material allocations for an already underserved marketplace. Iconex continues to compete for the materials necessary for production. Lead times for nearly every material used for label production have been extended, most are 12 weeks minimum. The impact is expected to be felt for the remainder of 2022, however we are making every effort to minimize the impact on our customers and their operations.
Pulp pricing which had flattened at the end of 2021 is trending up again. Pressure remains universal on all global supply chains for every industry fueling inflation on both labor and transportation. Wage rates to attract the skilled talent needed for production continue to steadily increase. Even with higher wage rates the labor pool remains stressed as we recruit the new co-workers required to satisfy today’s level of demand.
Transportation costs, for both raw materials and finished goods, are not immune to the inflationary pressure. The cost of shipping containers across the ocean is higher, truck drivers are in short supply, and gasoline is more expensive than many expected earlier this year. We anticipate these issues to be persistent throughout this year.
All suppliers have communicated the factors outlined above to substantiate their announcement for the latest round of cost increase on materials. As a result, POS Supply Solutions is announcing a price increase on all paper, label, and adjacent products shipped on or after May 13th, 2022.
We greatly appreciate your patience and understanding of these unprecedented macroeconomic conditions. Please don't hesitate to conact us with any questions.
Thermal Pricing Rising Again
February 9, 2022
The world's leading suppliers of thermal paper have all announced more price increases. Reasons for the increase are continuously rising costs for energy, chemicals and logistics. Appvion, Koehler Paper and Kanzaki Specialty Papers have announced 7-15% price increases that will go into effect this February and April.
- Appvion: 7% increase effective February 28, 2022
- Kanzaki: 7% increase on direct thermal products & 10% increase on ink jet products, effective February 15, 2022
- Koehler: 10-15% increase on thermal and carbonless paper, effective April 1, 2022
The supply of thermal and ink jet products continues to be limited as unprecedented demand and raw material challenges persist into 2022. We ask that you please order early, and be prepared for longer lead times.
Overall, our industry and business continue to endure unprecedented volatility in its supply and escalating costs. POS Supply is closely monitoring the economic environment, and while it is a fluid situation, our top priority remains to ensure a consistent supply to our customers.
We are grateful for your continued business and will continue to do our very best to keep you informed of any other market changes. Please feel free to call or email us with any questions.
Price Increases To Go Into Effect January
December 15, 2021
Prices continue to increase based on rising costs associated with production chemicals, energy, transportation, and distribution both ground and sea. Also included in this announcement are the cartons, cores, adhesive, ink, pallets, labor, and pulp. The entire supply chain has been impacted.
As a result, POS Supply Solutions is announcing a 5-10% price increase on all products shipping on or after January 3, 2022.
We appreciate your understanding. POS Supply will continue to work hard with the paper mills and other suppliers to minimize the impact of these price increases to our customers. Our goal is to offer the best quality products, on time, at competitive prices, and backed by the best service in the industry. We will continue to secure historical inventory levels of receipt roll and label supplies for all our customers.
Your POS Supply Sales Representative will be in contact with you in the next few weeks with exact details. You can also contact our customer service team at email@example.com or call customer service at 888-431-5800 and they will assist you with any questions you may have.
Thank you for your support, and we do appreciate your business.
Supply Chain Disruptions Force Yet Another Round of Price Increases
November 22, 2021
Over the past few weeks, virtually every thermal paper mill has announced new price increases for all commodity grades of thermal paper and labels. The increases are due to various causes such as natural gas cost increases, shipping container surcharges, increased chemical prices, and overall production cost increases. POS Supply Solutions is also experiencing significant cost increases for Labor and Transportation as well.
Due to the continued global supply chain issues and the price increases announced by thermal paper and label suppliers, POS Supply is forced to implement another price increase on all products shipping on or after December 1, 2021.
We always strive to offer our customers the very best combination of quality products, superior service, and competitive pricing. Our team is committed to keeping you updated with ongoing market conditions. Thank you for your continued business and support.
Additional Price Increases Announced on Thermal & Label Paper
October 26, 2021
Global thermal paper manufacturer Hansol, of South Korea, has announced that prices of its thermal paper and all kinds of label paper will be increasing by up to 15%, effective immediately.
The increase is a result of the ever-increasing costs of transportation and raw materials. Extreme ocean freight challenges continue in many countries around the world. Due to the congestion in major ports globally, the shortage of containers has worsened, leading to hikes in ocean freight costs.
Due to further significantly raising costs for logistics, energy and chemicals, Koehler Paper of Germany is also increasing prices for its thermal POS and label paper grades by up to 15%, starting on January 1st, 2022.
Conditions are expected to worsen with the Christmas and New Year holiday season approaching. POS Supply will continue to work with logistic partners to maintain a timely, reliable, and complete supply chain operations for our customers. Please contact us with any questions.
Thermal Paper Supply May Tighten Further With More Price Increases Announced
September 20, 2021
Thermal Point-of-Sale (POS) paper producers Appvion, Domtar, Hansol, and Koehler announced another round of price increases effective October 2021. Domtar and Koehler plan to raise prices 5%, while Appvion and Hansol announced a broader increase of 5-10%.
Besides the logistics cost increases, another factor that is driving the new price increases is a shortage in supply. This includes less imports with Lecta and Nippon pulling out of the US market because of the anti-dumping tariffs and Domtar not being able to support all demand due to insignificant capacity.
Listed below are links to thermal paper producer price increase letters:
This is in addition to the sharp increases in ocean freight and inland transportation in North America. It is estimated that domestic freight rates are up over 40% compared to last year. Ocean freight is almost 5 times higher than a year ago.
As always, we will continue to provide our customers and partners with updates as we learn more. Please don’t hesitate to call or email us with any questions.
Even Longer Lead Times Expected
August 12, 2021
The worldwide materials shortage and manufacturing / supply chain issues across the globe have lead to longer lead times in our industry. This is affecting the majority of our label and adhesive supplies, as well as thermal paper and other supplies. We continue to encourage our customers to work with their account manager for updates on prices, supply chain issues, and actions to help offset longer lead times.
We are keeping a close eye on this situation and working diligently to secure our material supply. We apologize the inconvenience and we are committed to providing transparent and timely updates. Thank you for your patience and support.
Challenges Continue, More Price Increases Coming
July 21, 2021
Global supply chain issues continue to persist. Unfortunately, with these continual challenges, in addition to price increases announced by thermal paper suppliers, POS Supply is forced to implement a price increase on all products shipping on or after July 31, 2021.* We encourage you to stock up now if you can.
*Price increases will not affect items in our COVID-19 products category - Despite market challenges, we've been able to lower prices on our sanitizing & PPE products! Shop our deeply discounted COVID-19 products , while supplies last.
As always, POS Supply strives to offer our customers the very best combination of quality products, superior service, and competitive pricing. Our team is committed to keeping you updated with ongoing market conditions. We appreciate your business and support.
Thermal Paper Prices Are Going Up Again
June 23, 2021
As a result of the thermal paper anti-dumping case ruling with the DOC, and other supply chain issues taking place across the globe, we have seen the major thermal paper suppliers announce price increases ranging from 12-15% in May 2021. And we just got word that thermal paper pricing is going up again this summer.
Koehler from Germany announced a 10% increase starting with August 1st deliveries. Hansol from Korea and Domtar from the US have announced the same 10% increase, and we expect to hear the same from Appvion soon.
Despite the turbulent thermal paper market, POS Supply Solutions is well positioned with an abundance of thermal paper inventory and strong relationships with converters to receive orders before the next increase hits. Please don’t hesitate to reach out to us for updates on prices, supply chain issues, and actions to help offset longer lead times. Thank you for your continued business and support.
Latest Thermal Paper Anti-dumping Case Ruling With The DOC
May 10, 2021
The U.S. Department of Commerce has been conducting an investigation regarding the dumping of thermal paper, specifically being imported from Japan, Spain, Korea and Germany. The initial petitions were filed by Domtar and Appvion, and it appears that they were successful.
On May 6, 2021, the DOC announced the preliminary duties for each country as follows:
- Korea: 6.19%
- Germany: 2.78%
- Japan: 35.71%
- Spain: 37.07% - 41.45%
As a result of this decision, we have already seen thermal suppliers, Koehler and Hansol, make announcements regarding the impact of this preliminary decision and how it will affect pricing. They both announced 12% price increases effective immediately . Domtar has also announced a 12-15% price increase effective June 1st. See letters below:
- Hansol from Korea: 12% effective May, 7th, 2021
- Koehler from Germany: 12% effective May 17th, 2021
- Domtar from US: 12-15% effective June 1st, 2021
Also, we expect some thermal paper suppliers from Japan and Spain to exit the US market for the short term based upon the high duties.
While the antidumping investigation remains ongoing, it is expected that the DOC, along with the International Trade Commission, will make a final determination probably in the September/October timeframe. We will continue to keep you advised as we learn more.
Supply Chain Disruptions Continue
March 23, 2021
As the global Covid-19 pandemic continues, the label supplies industry has experienced a massive increase in demand. This demand increase, combined with supply chain issues, has had rippling effects throughout our industry.
We anticipate price increases on the majority of our label and adhesive supplies beginning April 2021. This is due to the continuing challenges of increased raw material costs, base chemical costs, and extended lead times. Additionally, we see increases due to disruptions from:
- Strained logistics pipeline
- Struggling freight demands
We believe additional cost increases on raw materials and ongoing lead times will continue throughout 2021 and we encourage our customers to work with their account manager for updates on prices, supply chain issues, and actions to help offset longer lead times.
Thank you for your business and continued support.
Label Material Supplies Disruption
March 2, 2021
We need to share with you the raw material challenges that the label industry is facing as a result of the severe winter weather in Texas. The situation is especially affecting acrylic monomers (components of emulsion and solvent adhesives) and film products using polyolefin resins. Many of the manufacturers and suppliers of these raw material components have had to stop or slow production in order to complete repairs or they have had to shut down their facilities altogether. As a result of these unforeseeable circumstances, we are experiencing extreme disruption to our raw materials supply chain network.
POS Supply’s raw material suppliers are taking the following actions in order to better manage their operations:
- Operation - Adding shifts in several locations and maximizing overtime at all sites.
- Temporary extension of lead times - Lead times will vary by product depending on material availability and how this situation progresses. Our aim is to provide you with regular information updates and to protect the reliability of our order fulfillment.
- Prioritization of orders - Suppliers are prioritizing orders based on serving essential businesses and products. Suppliers are also not accepting new customers at this time so that they may focus on serving their existing customers during this challenging situation.
- Order quantity - Suppliers will be temporarily limiting order volumes to match recent ordering quantities and will not be able to accommodate pre-orders or stock-ups.
The duration of these supply challenges is currently unknown, as the demand for raw materials is strong in a recovering economy, and the raw material disruptions are impacting multiple industries. Overall, the general economic environment suggests raw materials costs will continue to increase for the foreseeable future. We are closely monitoring this very fluid situation and are working diligently to secure our material supply to improve our delivery performance. We recognize the inconvenience and delay this may cause and are committed to providing transparent and timely updates.
Thank you for your continued collaboration and partnership.
Global Thermal Paper Coaters Announce Thermal Paper Price Increases
January 21, 2021
The world's leading suppliers of thermal paper have all announced price increases. The increases are being attributed to rising costs associated with production, energy, transportation, and distribution. South Korea’s Hansol Paper, Germany’s Koehler Paper Group, Spain’s Lecta, and America’s Domtar have all announced 8-12% price increases.
Listed below are the announced thermal paper price increases.
- Koehler Paper Group: 8% increase effective with shipments on 3/1/2021
- Hansol Paper: 8% increase effective with shipments on 3/1/2021
- Domtar: 12% Increase effective with shipments on 3/1/2021
- Lecta: 5% increase effective with orders on 1/4/2021
Another factor with these price increases are the pending Petition for the Imposition of Antidumping duties filed by Appvion Operations Inc. and Domtar Corporation on October 7th, 2020. The petitioners have asserted that thermal paper originating from Germany, Japan, Korea, and Spain are being imported into the United States at less than fair value.
Per the official petition, “The significant and increasing volume of dumped imports has severely damaged the U.S. thermal paper industry. The subject imports occupy a significant and increasing share of the U.S. market and supply that market at significantly lower prices than the domestic industry. As a result, U.S. producers have lost sales volume and market share and have been unable to increase prices on remaining sales to cover increased costs of production.”
The initial phase of the investigation has been completed. In November, the USITC determined that there is sufficient evidence for the petition to move into the next phase of investigation. Our understanding is that the USITC and the Department of Commerce will make a final ruling in the Spring 2021 timeframe. At that time, they will rule to agree or disagree with the petitioners.
If they agree with the petitioners, the US Department of Commerce will levy duties against the originating countries. The exact duties may vary by country of origin. Any duties assessed to the country of origin will be effective for both jumbo and converted products.
POS Supply Solutions will continue to work with our suppliers to minimize price increases as well as constantly working on improvement initiatives and other cost reduction efforts. We are grateful for your continued business and support, and will continue to do our very best to keep you informed of any other market changes. Please feel free to call or email us with any questions.
Thermal Paper Price Increases Announced by Hansol and Torraspapel-Lecta
January 4, 2021
South Korea based Hansol Paper and Spain based Torraspapel-Lecta have announced price increases on Point of Sale (POS) grade lightweight thermal paper. According to RISI, Hansol, a key importer of thermal paper into the US, has announced a 10%-15% increase on thermal paper effective January 1, 2021. Torraspapel-Lecta announced an increase of 5% effective January 4, 2021.
We will continue to provide our customers and partners with updates as they become available.
USITC Votes To Continue Investigations Concerning Thermal Paper From Germany, Japan, Korea, And Spain
November 20, 2020
The United States International Trade Commission (USITC) determined that there is a reasonable indication that U.S. industries are materially injured by reason of imports of thermal paper from Germany, Japan, Korea, and Spain that are allegedly sold in the United States at less than fair value. The investigation covers both jumbo and converted thermal paper rolls with an actual basis weight of 70 grams or less. This would include POS receipts, ATM receipts, coupons, credit card receipts, gas pump receipts, kiosk receipts, parking receipts, portable printer receipts, prescription receipts, and other economy grade thermal paper applications.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of imports of thermal paper from Germany, Japan, Korea, and Spain, with its preliminary antidumping duty determinations due on or about March 16, 2021.
Domtar & Appvion File Anti-Dumping Petitions on Thermal Paper in the USA
October 21, 2020
On October 7, 2020, Appvion Operations, Inc. and Domtar Corporation (Petitioners) filed antidumping duty (AD) petitions on thermal paper from Germany, Japan, Korea and Spain. Here is the link to the United States International Trade Commissions docket number 3500.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than "normal value." For AD duties to be imposed, the U.S. government must determine not only that dumping is occurring, but also that there is "material injury" (or threat thereof) by reason of the dumped imports. Importers are liable for any potential AD duties imposed. In addition, these investigations could impact purchasers by increasing the prices and/or decreasing the supply of thermal paper.
The scope of these investigations covers imports of converted rolls from third countries that are manufactured from jumbo rolls produced in the subject countries.
As your Point of Sale Supply Experts, we wanted to keep you informed about this. Right now, it is too early to speculate how this might play out. We will certainly keep all of our customers, vendors and partners updated as we learn more.
As always - we are here to help if you have questions!
Call Us Toll Free at 888-431-5800 (M-F 8:00am-8:00pm ET).