Kraft paper demand is on lower side, Traders / Dealers should also minimize their margins

Kraft paper demand is on lower side, Traders / Dealers should also minimize their margins

-Exports of Paper from India has been influenced due to high logistic and production cost.

-Waste paper suppliers should not indulge in Stock holding tactics.

The Spiraling input cost for paper mills like coal, chemical and logistics, and poor demand for finished paper is impacting the paper market. 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. Arvind Agarwal, President- NCR Paper Mills Association and Chairman & Managing Director of Paswara Papers Limited, Meerut- Uttar Pradesh, views over the market situation. Paswara Papers :Limited is a PASWARA GROUP Company based in India and engaged in the manufacturing of Multi Layer Kraft Paper (Corrugated Case Materials) and Kraft Paper Board, used for making packaging boxes, cartons, paper bags, etc, to cater the Specialty Paper Market in India and abroad. The total production capacity is over 225,000 MT annually. 

25th April 2022 | The Pulp and Paper Times:

Q: 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?

High increase in price of Fuel, Chemicals, Raw Material viz Waste Paper & Logistics Cost etc. has very badly impacted the daily operation of Paper Industries in Northern India and Paper Industries are somehow trying to continue the operations  despite high increase in Input Cost as  we find no alternative way to sustain in Market. Further, We hope the market situation will improve in near future as soon as Russia & Ukraine conflict dilutes in near future as globally high oil price will come down which will surly reduce logistic cost & bring down prices of Chemicals, Fuels etc. 

                     

Q: 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

We cannot immediately comment on Shut Down of Units however, Some are considering the idea of shut down also but there are many other problems which are associated with shut down. 

Q: 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.

The demand in market presently seems to be at lower side probably the Exports of Paper from India has been influenced due to high logistic cost as well as due to high production cost. Paper Units are experiencing a very tough period on account of high price increase in Input Cost. 

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

As far as we understand, The Traders /dealers & Corrugators blame Paper Manufactures for increase in Paper Prices while they do not try to understand that the price increase of Paper is only due to high increase input cost. The dealers, Corrugators should understand the actual global market scenario & should cooperate with the paper units in this tough time. Further, The Traders / Dealers should also minimize their margins for selling the Finish Products in market in present days. Further, it has come to notice that some Raw Material Suppliers particularly waste paper supplier are indulging in Stock holding tactics which the suppliers should dispense with such unfair practice and they should understand if the Paper Units are shut down due to tough period, then to whom they will sell their Waste Paper/ Raw Material & they will also sit idle. Therefore, Our Suggestion is to all Traders / Dealers, Corrugators & Raw Material suppliers to cooperate Paper units in this time of distress. 

Web Title: Kraft paper demand is on lower side Traders Dealers should also minimize their margins