IRPTA: finished paper demand reflects poor sentiments of the market, plummeting demand for waste paper in the coming months

New Delhi | 27th April 2022 | The Pulp and Paper Times:

From 1st April onwards rates of most of the grades started coming down due to number of reasons but the paper industry didn't decrease the rates of finish paper and board. There were certain mills who announced to increase the rates of their finish product even the raw material i.e. waste paper prices were down by approx Rs 3/ per kg., says Indian Recovered paper Traders Association (IRPTA)’s president Mr. Naresh Singhal. 

Mr. Singhal says that few paper mills of the duplex in Uttrakhand and Utter Pradesh have stooped their production due to poor demand of finished paper for at least one week, which will lead to further price decrease in waste paper. Prices have been dropped by Rs. 3 to 4 per kg for waste paper.

Most of the finished paper dealers adopted the strategy of minimum fresh buying and also to continue sales of their godowns stocks which was maintained by these dealers since long and of much lower rates. Those Traders got the opportunity to clear their stocks with high profits.

Mr. Singhal said that “I wish to submit as under that rates of recovered paper are going down and down every day. The most consumable product in paper trade i.e. Kraft paper and it's waste has come down by Rs 12/ to 13/ per kg within last 30/40 days. Even only last one week it has gone down by approx Rs 4/ per kg.”

“In current scenario rates of corrugated waste paper in North India is approx Rs. 21000 per tonne and finish paper is almost approx Rs 35000/ pmt.,

“Regular downfall in market trends is not permitting paper dealers to hold stocks and same is with corrugated box manufacturers and also manufacturers of other allied paper products manufacturers,” he said. 

The end-users of Kraft paper or packaging paper segment are expecting more down in the market.

The finish paper market is not stable and hence packaging product manufacturers are not in the condition to contract with their buyers. Similar is with the waste paper buyers who are managing industrial waste are not in the position to make contracts for any fixed period.

Mr. Singhal gauges the market situation and predicts that uncertainty in the market will not permit trade with liberty. The total paper industry and related stakeholders will have to face a money crunch.

“Rates of corrugated waste in western Uttar Pradesh touched approx Rs 22000/. Pmt and also other grades of waste paper like old books sorted books in North India goes down by approx Rs 3/ per kg.,

“Rates of DC, Corrugated waste, Old Books Sorted Books REC, Super REC and also so many other grades are continuously in declining mode and also falling day by day gradually.  Money crunch in the recovered paper market has been noticed. Every seller should confirm with their buyers about the payment schedule prior to the sales. As our pre-assessment 25% to 28% rates cut down in packaging paper segment in approx last 30 days.” He informed.

Tendency for minimum fresh buying has created a vacuum in demand for finish paper and board. A large number of mills are facing demand problems and on the other hand, most of the mills have stocks of waste paper for more than 30 days.

“This is the time when even small units which normally face the raw material now are having sufficient raw material to give competition to bigger units who have their unions to keep finish paper market up,

“What will be the consequences and what is the expected near future of the recovered paper market and also finish paper. I request all of you to have a debate on this subject and also share your valuable information and suggestions” he concluded.

IRPTA Indian Recovered Paper Traders Association invites to all stakeholders of the paper industry and associations related to paper mills, paper dealers, corrugated boxes manufacturing industry, printers, publishers, and Paper converter units to visit  IRPTA’s pavilion which is- L-60, Hall no-12 at Paperex exhibition Greater Noida U.P from 10th May to 13th May 2022. Here this is also to inform everyone that Indian Recovered Paper Traders Association is participating very first time in Paperex exhibition.