Price of waste paper plummeted to its lowest level in the previous five months, consumption reduced due to poor demand

Price of waste paper plummeted to its lowest level in the previous five months; consumption reduced due to poor demand

- Lower prices of imported waste paper as compared to domestic waste paper
- Paper mills are using imported and domestic waste paper on an average 70% and 30%, respectively.

New Delhi | 7th June 2023 | The Pulp and Paper Times:

The price of waste paper in India has reached its lowest point in the last five months of 2023 due to overcapacity in kraft paper production and a global economic slump brought on by the recession. 

"The price of Kraft waste paper has fallen to its lowest level in the final five months of 2023. Kraft waste paper has reached prices of INR 13000 to 13500 per tonne for mills in western Uttar Pradesh, compared to INR 11500 per tonne in Nagpur, Maharashtra. 

“The price of waste paper using in making kraft paper has reached to bottom level in various part of the country, for Jharkhand it is on INR 12000/12500 PMT, Chennai-INR 11000 PMT, West Bengal Rs 13.50 to 14.00 per kg, and in Telangana it is at INR 11700/-PMT” Mr. Singhal informed.

According to Mr. Singhal, the domestic recovered paper collection has decreased by up to 50% to 55% as a result of lower prices for waste paper of all grades. Additionally, approximately 30% of those who collect waste paper and other scrap from door to door—known as kabadi walas or feriwalas in common language—have stopped doing so because they can no longer support themselves in this line of work and have moved on to other jobs or trades.

On the imported waste paper scenario Mr Singhal shared that the market share of imported waste paper in recycled paper mills have increased by approx 20 to 25% due to the lower prices of imported waste paper as compared to domestic waste paper. Paper mills are using imported and domestic waste paper on an average 70% and 30% respectively.

He informed that various grades of imported waste paper are such as Softmix at 90$ pmt, Occ europe 98/2 at 130$ pmt, Occ 95/5 europe $120-125 pmt, and Softmix price USA $ 80 pmt.

“Almost all grades of imported material are also in very bad condition. Prices have been declined regularly since last 2/3 months and expecting further down.” He said.

Approx 20% of Small and medium vendor collecting paper waste from the industry where waste paper is regularly generated have stopped collection due to unstable and also gradual declining of rates of waste paper. The size of collection of those traders is approx 50 metric tons to 100 metric tons monthly basis.

Additionally, it has been observed that some mills are prepared to manufacture any appropriate replacement product on their machinery in response to market demand. There is a sharp downward trend in both writing and printing, and another drop of Rs. 2-3/kg is anticipated. Nearly all North Indian duplex board manufacturing facilities experienced a sharp decline in their purchases of waste paper of all grades over the past three to four days.

According to some rumours in the market excess arrival is due to large quantities added to the domestic arrivals and hence prices of waste paper dropped drastically.

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