Imported Waste Paper Shortage Pushes Kraft Paper Prices Higher; Domestic Market Remains Firm

Imported Waste Paper Shortage Pushes Kraft Paper Prices Higher; Domestic Market Remains Firm

Imported waste paper availability has tightened amid higher international prices and container constraints, putting upward pressure on domestic waste paper and finished Kraft Paper prices across India

The Pulp and Paper Times

Mr. Naresh Singhal, President, Indian Recovered Paper Traders Association (IRPTA), said the Indian paper market has witnessed significant changes in the last few days, particularly in terms of prices, international market conditions and the availability of imported waste paper.

According to Singhal, the shortage of imported waste paper is having a direct impact on the domestic market, with Kraft Paper prices moving upward across different regions.

In North India, the basic price of 18 BF Kraft Paper has reached around ₹36, while mills have already started offering higher prices. He said the basic price could increase further to around ₹37 within the next few days, supported by continued demand pressure. According to him, the current market position is expected to remain firm through around 20–25 October, primarily due to festival-driven demand. 

Singhal also highlighted changes in the price differential between different Kraft Paper grammages and qualities. The price difference between 140 GSM and 120 GSM Kraft Paper, which was earlier around 50 paise, has increased to ₹1. Similarly, the premium for Golden Yellow (GY) quality has increased from around ₹1 to ₹1.50, he said. 

On the raw-material side, Singhal said domestic waste paper in North India is currently averaging around ₹22, while in Gujarat, standard Kraft waste paper is around ₹23.50 per kg and pure Kraft waste paper around ₹24 per kg on mill delivery. Finished Kraft Paper in Gujarat is around ₹37 for 16 BF, according to his assessment. 

Imported Waste Paper Availability Emerges as a Key Concern

Singhal identified the reduced availability of imported waste paper as one of the major factors influencing the current market. He said imported waste paper is arriving in significantly lower quantities, while container availability and freight conditions are creating additional challenges.

He said US Double Sorted OCC, which was around US$230–240 in August, could reach around US$260 for September bookings, making the material increasingly difficult to bring into India. Meanwhile, waste paper from Europe, Ireland and the UK continues to arrive, including 98/2 material, which was around US$210, with the possibility of further increases due to freight and container constraints. 

According to Singhal, the impact of tighter imported waste paper availability could extend beyond the current festival season. He expects domestic finished-paper prices to remain relatively firm even after demand moderates following Diwali, as limited availability of imported waste paper could prevent a significant decline in finished-paper prices. 

Chennai Market Also Sees Price Increase

Singhal said the Chennai market has also witnessed a significant change. Local mills, where waste paper prices were earlier around ₹22, have moved to approximately ₹23, while mills outside Chennai are quoting around ₹24.

As a result of the increase in waste paper prices, finished Kraft Paper prices in the region have also moved higher. He said 18 BF finished Kraft Paper, earlier around ₹36, could move to approximately ₹38. 

Festival Demand Supports Market

According to Singhal, the current improvement in demand is largely festival-driven. With multiple festivals approaching across different regions—including Durga Puja, Navratri, Ramleela and the broader Diwali season—paper and packaging demand remains strong.

He noted that waste paper collection has also increased as households and offices undertake cleaning ahead of the festive season. However, despite higher domestic waste paper availability during this period, he does not currently anticipate a significant decline in the market. 

Singhal said the current market is near a peak in terms of demand, with mills operating well and Kraft Paper manufacturers benefiting from the widening gap between waste paper and finished-paper prices. He noted that the differential, which was earlier around ₹9, has increased to approximately ₹14.50, supporting the position of Kraft Paper mills.

He also said duplex mills have increased prices by around ₹2–3 over the past one to one-and-a-half months, while white-grade recovered paper used in Writing & Printing Paper has seen an increase of approximately ₹1–1.50. 

Kraft Liner Prices Rise Sharply

Singhal also pointed to a sharp increase in Kraft Liner prices. According to his market information, Kraft Liner, which was selling at around ₹64–65 in Delhi about one to one-and-a-half months ago, has increased to approximately ₹80–81 in the Delhi-NCR market. 

He attributed the broader price movement to reduced availability of imported material and continuing difficulties in bringing raw materials into India.

Market Expected to Remain Firm

Looking ahead, Singhal said the market is currently not showing signs of a slowdown. While domestic waste paper prices could see some correction after October 25 if festival-related collection increases, he believes finished-paper prices may remain relatively stable because of the limited availability of imported waste paper.

He further expects domestic waste paper prices could come under renewed upward pressure after mid-November if domestic collection declines while imported waste paper remains difficult to procure. 

Singhal also said the impact of higher imported waste paper prices is being felt across North, South, West, East and Central India, making the issue a broader industry concern rather than a region-specific development. He expects imported waste paper prices to remain under upward pressure in September. 

Published at : Oct 02, 2026 08:00 AM (IST)

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