Kimberly-Clark announced plans to raise the price of its away-from-home tissue product line by the first of next month. According a reports, the hike will be around 6 percent.
According to Chip Dillon, an analyst with Smith Salomon Barney, the success of the increase would be contingent upon Georgia-Pacific Corp. following with an increase, as well, since the two companies control more than 70% of the U.S. AFH tissue market.
One negative, according to the analyst note, is the possibility of lower pulp prices. According to SSB, if market pulp prices decline by $110 per metric tons during the first half of this year, Procter & Gamble could cut their price since they purchase their pulp on the open market.
K-C, meanwhile, still
purchases a significant portion of its pulp from its own mills.

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