Waste Paper-based Writing & Printing Mills are in the Doldrums

Waste Paper-based Writing & Printing Mills are in the Doldrums

Kashipur | 07th November 2020 | The Pulp and Paper Times:

Registering a significant demand drop in writing and printing paper, paper mills in Uttarakhand have been operating at a lower level of capacity utilization. Describing the scenario under the present COVID situation, Mr. Pawan Agarwal, Managing Director of Naini Group said during an IPPTA’s webinar that, waste paper-based writing and printing (WP) paper mills are under tremendous pressure in the state; very low demand and prices have put their survival at stake.

Speaking at the webinar topic "Covid19 Its Effect and Head Wind That Paper Industry Faces Months Ahead" Mr. Agarwal further describes the gravity of the situation close to 180 participants virtually and said that Waste paper-based WP paper mills are running just 10 to 12 days in a month, while virgin fiber-based mills are slightly better off. They have been able to break even during this tough time. Agro-based mills have achieved close to 50 percent production level.

There are 35 paper mills in Uttrakhand producing 1.6 million tonnes of paper in a year. They are producing broadly Kraft, Writing & Printing, Duplex board, Tissue, and MG paper.  

"Kraft paper mills are running close to 100 percent capacity utilization, a shining factor, Duplex board is again operating at 100 percent" Mr. Agarwal informed.

He suggested to paper mills to have a hard look at their assets whether it is pulp mill, machine or finishing house, and try to optimize input cost in the best possible manner. Tweak with raw material and chemical composition to optimize the cost of production. 

He insisted to add diversified products in the ˜basket" in order to pass this tough time.

Mr. Pawan says that prices have gone up for Kraft paper mills by 15 to 20 percent but their cost of production has simultaneously gone up by the same percentage, so they are not really better off.

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