Indian paper industry sees price increase due to rising raw material costs

Indian paper industry sees price increase due to rising raw material costs

The Pulp and Paper Times | May 8, 2024

Virgin grades paper prices are seeing a correction due to the significant increase in the costs of raw materials, transportation, and other essential inputs required for operations, affecting the paper price dynamics of the Indian paper industry. Hardwood pulp and waste paper prices have surged significantly. Continuous increases in the cost of raw materials and freight have initiated this price increase to cover the cost.

There have been price hike circulars issued by JK Paper, APP, Bindal Papers, and Khanna Paper. The increase looks significant, ranging from Rs 1,000-2,000 a tonne for various virgin grades, including boards.

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JK Paper's letter to its Channel Partners & Customers stated, "In recent months, we have faced a significant increase in the costs of raw materials (Wood & Pulp), transportation, and other essential inputs required for our operations. Despite our efforts to absorb these rising expenses, we find it necessary to adjust our prices accordingly."

“Due to continuous increases in the cost of raw materials and freight, it has become necessary to initiate this price increase to cover the cost,” APP (CHINA) informed its valued customers.

Effective 16th May 2024, JK Paper announced an increase in the prices of its products. New Prices will be applicable for all fresh orders received from 16th May 2024 as mentioned below. This adjustment is essential to sustain our business operations due to the rising input costs. New Prices will be applicable for all fresh orders received from 16th May 2024. JK Paper increased the price of all FBB Grades (JK Tuffcote family) by Rs. 2000/- PMT, FBU SS (Uncoated Board) by Rs. 2000/- PMT and all Polycoated Grades -by Rs. 2000/- PMT.

“The Price of HW Pulp has gone up by 25% in the last couple of months. Also, the Recovered Paper has witnessed a 15% increase in the last 1 month. And so, we have decided to initiate this Price Increase,” Khanna Paper said in its intimation to its channel partners and Customers.

APP (China) is announcing a minimum price increment of 20 USD/t effective from May 15th, 2024. Khanna Paper Mills is increasing the Price of W&P Grades by Rs. 2000 PMT w.e.f., 7th May'24. 

Bindals Papers Mills said in its intimation that Considering the sharp escalation of Raw Material prices and pressure on production cost, we are increasing the price of our Writing and Printing Grades by Rs. 1000/MT with immediate effect i.e. from 06th May'24.
 

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