Arco Paper and Print has increased the price of its coated reels and sheets by 10%, citing an increase in raw materials.

The Hertfordshire-based company, which is the UK distributor for Chinese paper manufacturer and Asia Pulp and Paper (APP) subsidiary Gold East Paper, said that the increase would take place with immediate effect.

Arco claimed that recent increases in raw material prices were "well beyond the level" which it could hope to absorb.

Eik Lim, head of overseas direct sales at APP China, said: "All of our customers are aware of the massive increases in raw material, and while we have made every effort to absorb these costs, we are no longer able to do so. It remains highly likely that paper prices will continue to rise during the course of 2010."

The BPIF has recently hit out at widespread plans by merchants to increase the price of paper by 8%-12% and demanded that the rises be better justified.

The BPIF has hit out at plans by merchants to increase the price of paper by 8%-12% and demanded that the rises be better justified.

Printers are facing double-digit rises after merchants announced plans to put up prices in April following increases by several paper manufacturers.

BPIF chief executive Michael Johnson expressed dismay at the proposed increases and has asked for an urgent meeting with the National Association of Paper Merchants (NAPM).

He said: "Although we appreciate that manufacturers are facing increases in raw material and production costs, our members will find it well-nigh impossible to pass these increases on to customers in the present climate. Demand remains depressed and the level of trading in our industry is still well below pre-recession levels."

He added that with margins slashed, many companies would "surely fail" as a consequence of accepting the price rises from the paper manufacturers.

"The NAPM and its members will need to do some convincing to justify increases of this order," he added.

However, NAPM director Tim Bowler said that prices had not substantially moved on in seven years.

The trade association’s figures show indexed overall prices from January 2003 to January 2010, which reveal that paper prices were up 2.4% this January compared with January 2003.

"Merchants had a record year from bad debts from failed printers of nearly ￡18m," Bowler said.

Print companies have been warned that, although not all increases have been confirmed, most merchants will make increases in the region of 8%-12% from 6 April