“Imported recovered fibres and Pulp grades are all expected to increase by 15-20 % from the current levels” says Mr SVR Krishnan

“Imported recovered fibres and Pulp grades are all expected to increase by 15-20 % from the current levels” says Mr SVR Krishnan

- Paper Mills to focus on the internal operating efficiency, consistently delivering good quality products on time
- The Oil & Gas supplies are going to be hit and the prices will increase phenomenally and the entire logistic between the Asian countries and Europe & Africa are getting jammed slowly.
-mills will be forced to recover the sudden surge in the raw material cost from the market.

The Pulp and Paper Times provides a brief analysis of the Red Sea Crisis and its implications for the paper sector. India is a significant importer and exporter of various paper goods, including pulp, finished paper, waste paper, and other types of paper. This crisis could have an effect on the market's price structure and put the sector in disarray. We conducted in-depth analyses of the Red Sea situation and spoke with a number of prominent figures in the paper sector. here are the openion of Mr SVR Krishnan, COO- Khanna Paper Mills: 

The Pulp and Paper Times:

Q: How this suspension of vessels in the Red Sea will impact the Indian Paper Industry?

The impact due to this unrest and the attacks on the commercial vessels in the Red Sea region will certainly impact the global trade and all the Industries in the country, not only the Pulp & Paper Industry.

The Oil & Gas supplies are going to be hit and the prices will increase phenomenally and the entire logistic between the Asian countries and Europe & Africa are getting jammed slowly.

The lead-time will increase by a month or so with the ocean freight is expected to go up by 30-40% , if the attacks on the red sea continues further.

Q: Will the price of imported recovered fibre for India see a rise in price in the coming time? Any assumption of price per tonne?

Yes, the Prices of Imported recovered fibres / various waste paper grades and Pulp grades are all expected to increase by 15-20 % , from the current levels.

Q: Domestic waste paper and finished kraft paper /WPP may have a price impact due to this crisis. May the market see the price rise?

When the waste paper imports are shrunk , as it was seen during the COVID 19 Period , the demand for the local waste paper grades like , white waste , mix waste , SOP, OCC/ Kraft and ONP will increase and there will be an unbalanced situation which will push the prices of the waste paper grades up and as a result the mills will be forced to recover the sudden surge in the raw material cost from the market. We need to also consider the lean demand for certain grades of paper and packaging boards in the country. We need to wait and observe the on-going situation at the red sea and the cautious response by the shipping lines and also the dynamic situations in the market place.

Q: How will this situation impact the imported pulp prices to be used by Indian paper makers for different grades of speciality and writing and printing paper?

As explained earlier, the prices of the imported Pulp grades are expected to go up further. Already the imported virgin grades Pulp Prices are under recovery path and expected to go up to 15-20% , if the situation continues.

Q: Do you think this could turn into a win-win situation for some of the big paper mills in terms of price and market monopoly ? as the imported paper will also be costlier?

I will not talk here about big or small, the efficiently operated Pulp & Paper mills, making good quality production of papers and packaging boards will try to protect their margin and improve their Business Performance. Some advantage and additional edge will always be there with the Bigger integrated Pulp & Paper Mills, where the internal efficiency, Smart Procurement, Prudent control on the Finance and the Market reputation are at its best.

Q: If this disruption is prolonged, The Indian domestic market may see a sharp increase in the paper price of ‘A’ grade paper mills’ (wood-based WPP and copier) products if the pulp price increases.

This is to be watched considering the dynamic situation with respect to on-going unrest, shipping lines response and the overall market buoyancy

Q: Any other important comment for the paper industry? or any planning and strategy to be followed.

At this point in time, the mills, be it small or big, focus on internal operating efficiency, consistently delivering good quality products on time and also good management on the Inventory levels with timely intervention

Web Title: “Imported recovered fibres and Pulp grades are all expected to increase by 15-20 % from the current levels”