Indian paper demand remains strong despite the global market slowdown, with prices anticipated to stabilize near pre-COVID levels

Indian paper demand remains strong despite the global market slowdown, with prices anticipated to stabilize near pre-COVID levels

- The Prices across the Products should stabilise in the next few months to near Pre-covid rates and will work around the same.
The article below is written by Mr. Bhavesh Gala, Managing Director of Infinity Industries Pvt. Ltd. for July-August 2024 Edition. Mr Gala has an experience of working in Paper Trade for more than 30 years and is the second generation of Family Business. Have been the first movers in various segments of Paper in India and has travelled extensively and have visited to more than 100 + paper mills across the globe. The views are personal.

The Pulp and Paper Times 

Market Overview
Overall Market condition presently is in unstable and is in wait and watch model. As the present condition as the International Market is in slow condition or in bad position the effect too comes to India. But Indian basic consumption of Paper is there but as soon the rates stabilises across the products, the demand will come up again to normal position. India is in much better position for demand of Paper. 

Domestic Prices
The Prices across the Products should stabilise in the next few months to near Precovid Rates and will work around the same. As we deal in commodities and our commodity grow on trees which we replenish as much as we want easily and due to lot of technology and technical properties upgradation, the rates will remain in pressure. So the correct rates across the world for our Paper Commodity is near to Precovid rates only.

Export Scenario : As we all are aware “ Humans are the most adaptable species  in any scenario”  So is the same is in Business, As the demand for local Paper goes down / slow locally We tend to look for better opportunities and the same we look out for more markets and makes us more adaptable to the export market. As after Covid of China + 1  Strategy by everyone there has been added advantage to our Paper Industry and allied Business which has helped all to export more volume across the globe.

1)Paper Import : Import of Paper in any country can only happen if there is less production locally compared too the local demand or there is big price gap between local and the imported paper or the quality / service of the product required is not available to the local  demand. If  all the conditions are in correct measure, then there is no possibility of Imports of the same product can come in big quantity. Local manufacturers are capable in all three parameters to counter imports in much better way.

2) Input Cost Analysis and Pulp Price Scenario : As there will be weak demand of Paper across the globe due to various market and geopolitical scenarios , there will be direct pressure on the Pulp too. Mills have tried to do opportunistic business by creating various scenarios but has not able to sustain the same and has been back to normal. 

3) Waste Paper Scenario : The demand for Waste Paper  will always be high as we have majority of Production in India is on waste paper. The availability of the same will increase day by day by increase of our Paper Consumption. The developed nations have ample availability of Pulp and major of their production are on Pulp, so their wastepaper will surely be exported to countries with major production on Recycle / Waster Paper. There is ample of opportunities for the Waste Paper Collection in India as per the data available but the fact needs to be checked where every house sells their wastepaper, ragpickers collect paper and give it to waste paper merchants, Paper is not dumped in the dumping grounds so where is the Paper missing in the link ?

4) Red Sea Crisis : The crisis has been subdued by Shipping Lines by reworking their routes, plans and the rates. The impact was there in start and has been corrected presently. The Local Geopolitical Countries have been active to correct the measure. India has not seen a big impact on Paper Business in Imports as major imports are from the East except for the Waste Paper which has corrected their rates according to the Market conditions. Some of the exports had been affected earlier to the West but has restarted back to Normal.

5) Future Paper View : To my understanding Paper will be in strong and stable demand and as assumed the Per Capita Consumption of Paper is 15 Kgs approx. the same with natural organic growth in less than 7 years should double up and Industries in India are and should be gearing up for the same to meet the demand as forecasted by Experts. With many other external support like Make in India, New Education Policy, Infrastructure Developments and other external effect may push up the demand in short time.  Paper Demand is corelated to the GDP of a Country, where India stands strong. We all are in the correct Profession / Business and the Paper Demand may change its form but will remain strong

About Infinity Industries:
Infinity Industries Pvt. Ltd. is a Family-Owned Professional company and a group company of Reliable Paper based out of Mumbai and having its branch in Delhi. The group is celebrating its 50th Anniversary in the current year of its operations. Infinity is one of the reputed Paper Trading House deal in all Kinds of Paper, Pulp, Print Supplies and Paper Products. Infinity is into imports and exports of Paper and Paper Products.

Infinity has its one of the Largest Warehousing Capacity and Conversion Unit based in Bhiwandi and were the pioneers with various certifications like ISO 9001, ISO 14001, Oshas 45001 & FSC Certified. Company is also PEFC  complied.

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