Duplex Paper: Price of not your ‘Choice’, converters are shifting on lower packaging board

Duplex Paper: Price of not your ‘Choice’, convertors are shifting on lower packaging board

Price of 230 GSM LWC may surge by 10 to 15 percent | Paper mills may charge the price of their choice

Morbi | 10 March 2021 | The Pulp and Paper Times:

Paper mills across the globe have been reporting high sales volumes and pricing for containerboard, which has helped boost demand for old corrugated containers. The shortage of Domestic and imported OCC is becoming a nightmare for paper mills, Gujarat (India) region one of the biggest hubs for paper manufacturing having more than 200 paper mills, is facing the heat of enhanced price of waste price. According to a Waste paper supplier, price for domestic OCC is touching to Rs. 26 to 27 per kg. 

In Recycling Today’s story which states that as of early March, Material Recovery Facilities (MRF) operators and brokers alike say recovered paper prices are rising much more quickly in export markets than in domestic ones.

“Paper Industry is under the clouds of uncertainty. Recovered & finished paper prices are set to create history. Lack of Imported RCP and shipping containers are leading to increasing in RCP prices,” said Mr. Naresh Singhal, President - All India Waste Paper Dealers Association (AIWPDA) 

Apart from kraft paper, Duplex Board prices have also shoot up 30 to 40 percent, and it is expected go up in march also by 10 to 15 percent. 

“The availability of duplex board will get interrupted more in June- July month, as monsoon season will knock in Gulf and European countries causing the supply chain. Paper Mills, those having a strong inventory of waste paper in their godown may charge the price of their choice,” Said Mr. Nishith Patel, Director at Spento Papers India LLP producing 300 TPD quality coated duplex board in Morbi Gujarat.

Paper Mills in Morbi region are planning to cut their daily production by 10 to 20 percent in order to get handsome price of duplex.

Mr. Nishith anticipates that price for LWC of 230 GSM may surge by 10 to 15 percent in March month itself.

“The government of some countries has taken decision to interfere in shipping companies’ operation aiming to control the fright that went up unexpectedly. If this happens, the fright which has been raised almost 200 to 500 percent in last six months, should come down bringing relief to paper manufacture,” said Mr. Arjun Sitapara, Director at Camerich Papers Private Limited producing coated duplex board in Gujarat.

Mr. Sitapara predicts that LWC board my touch to Rs 50 per kg in coming month, and waste paper crisis may stretch till August 2021 after that we can expect some relief.

Duplex Board price is making packaging ‘expensive’ to convertors, “yes it very tough situation for them, but they are replacing the costly packaging grade with a cheap ones, like FBB (folding box board) has been replaced by white back board. Currently, the price of FBB is at Rs. 70 per kg which was at Rs. 45 per kg in last year,” said Mr. Manish Patel, Managing Director at Diyan Papers producing duplex board in Gujarat.

According to a March 6 article in the New York Times, a lack of dockworkers and truck drivers—in part because of the pandemic—has slowed container shipping at ports in Los Angeles and Long Beach, California. Gene Seroka, executive director of the Port of Los Angeles, reported in one of the port’s board meetings recently that he suspects that ports will remain backlogged until midsummer.

Web Title: Duplex Paper Price of not your Choice converters are shifting on lower packaging board