POS Supply Solutions Blog
Global Supply Chain & Materials Challenges
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
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 has announced the same 10% increase, and we expect to hear the same from Domtar and 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).