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Doing full monthly contract with customers, OCC price reduction was not upto the expectation

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Kraft Paper Market Scenario in India

Doing full monthly contract with customers, OCC price reduction was not upto the expectation

The Spiraling input cost for paper mills like coal, chemical and logistics, and rising price of Kraft paper is impacting the paper market. Right from waste paper suppliers to end user industry, all are feeling the heat of price rise. In this context, The Pulp and Paper Times talks to various kraft paper mills owners about their paper mills operation in this tough time. How they are managing their operation and inclining with other stakeholders down the line. 
Here is Mr. Abhishek Agarwal, Director at Resonance Paper Mill, Morbi, Gujarat, views over the market situation. The paper mill is manufactures multi-layer high-quality kraft paper, with a range from 16 to 35 BF and GSM from 110 to 300.

Gujarat | 20th April 2022 | The Pulp and Paper Times:

Spike in coal prices, chemical and logistics has escalated the operating cost of paper mill, How does your paper mill Managing day- to day operations?

Almost all input cost like wastepaper,coal, chemicals, logistics and electricity have gone up a lot in the last few months. Paper mills are facing a financial crisis because of over working capital requirements. From the past few months it's very difficult to manage day to day operations because of the uncertainty of coal supply and waste paper price.

Waste paper prices are changing every day and due to this we can't prepare our proper purchase plan. Paper mills are facing many shipping challenges also so due to this sometimes waste paper containers also delayed and its effect the production & Sales planning.

Are you looking for shut down due to steep price increase in Raw material (waste Paper)? has the price of Imported OCC come down after the BAN was lifted by European Union.

The current demand of paper from domestic clients and exports customers are not in favour to take full production in every month. Coal and waste paper supply is also not sufficient for full month production so we are taking shutdown in every month in regular intervals. Prices of OCC is little bit down after BAN lifted but it was not upto our expectations. The prices of EOCC down just 10-15 USD and American OCC is still on higher side.

How is the demand of finished paper in market? Is your paper mill getting orders regularly? Or it is being impacted due to a steep increase in price of finished paper.

Although demand is slow in both domestic markets and export. Due to the high price of finished paper the customer takes as much he wants and does not stock too much.
Till today we are getting sufficient orders from our customers because of our quality and service.

We at resonance generally doing full months contract with customers so in general, we don't need to look orders on daily basis. At present we are doing domestic sell approx 70% and remaining 30% we are doing export.

By considering the current kraft paper market situation we diversified our products range and develop white top test liner paper. We are getting very good responses from overseas and domestic buyers.

Any other comments, you would like to mention here for Traders, Raw Material Suppliers, and Corrugators?

Paper mills, traders, raw materials suppliers and corrugators they all are connected to each other. Mutual cooperation and understanding will lead to overcome this crisis. The current situation is very difficult for every industry and everyone facing some challenges in there own way.

This problem cannot be solved over the night and we have to handle it for at least next 3-4 months more.

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