Why is the cost of Paper Increasing?

One of the questions we hear most from our customers over the last 12 months has been why is the cost of paper increasing?

There are two main reasons for these increases.

1. Since 2008 there has been a huge drop in demand for paper worldwide this in turn has lead to the main reason for these increases.
2. A large number of paper mills in Europe and across the world have gone out of business see links to articles below.

http://forestindustries.eu/content/paper-mill-closures-europe

http://www.independent.co.uk/news/business/news/international-paper-mill-closure-costs-371-jobs-1624352.html

http://psvallely.blogspot.com/2009/01/recent-pulp-mill-closures.html

This article below explains other factors in the increase of paper prices.

http://ezinearticles.com/?Increase-in-Paper-Price-Hits-Printing-Industry-Hard&id=4177934