“It will allow the Asian paper mills to enter into the market as a substitute of Indian 'A' grade”

“It will allow the Asian paper mills to enter into the market as a substitute of Indian 'A' grade”

- The impact of the fibre will be split on the ocean freight and it may not impact even 5%. Because of the Chinese New Year
- If the Indian mills raise the prices, the Asian mills material will suppress the price

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 opinion of Mr Vinay Jain, MD- MLM India Ltd.: 

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

The Indian Paper Industry will not be impacted much by this suspension of vessels in the Red Sea. The mills who are dependent on only Import will face the challenge for production on raw material Import base. It will allow the Asian mills to enter into the market as a substitute of Indian A grade. On the Asian mills there is no Red Sea impact.

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?

The impact of the fibre will be split on the ocean freight and it may not impact even 5%. Because of the Chinese New Year, the demand for the Raw material is down. So, the price of imported recovered fibre may not be impacted so much.

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

No, there may not be a price rise as the demand is weak and if the Indian mills raise the prices, the Asian mills material will suppress the price. Also, the pressure of sales will be impacted by the Export.

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?

Even in the last month the pulp price was strong, so pulp is moving on the stronger side. All price impact will be seen on the next quarter of the second year.

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?

The mill who has a pulp integration will take advantage of it and price depends on the demand & supply of imported paper. The imported paper will not be costlier as Asian mills. The Red Sea has no impact.

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.

Already answered in the above.

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

Indian Paper mills have a bright future due to the “AtamNirbhar Bharat policy”. Because the Government wants everything should be produced in India, avoiding the export.
 

Web Title: “It will allow the Asian paper mills to enter into the market as a substitute of Indian 'A' grade”