IRPTA: Sluggish demand crushes the price of imported waste paper, energy crisis increases raw material availability

IRPTA: Sluggish demand crushes the price of imported waste paper, energy crisis increases raw material availability

- Chances of export of finish Kraft and duplex board increase from November onwards.
- OCC Europe has come at $140/145 per ton, while soft mix waste stays at $125/130 per ton.
- Energy Crisis halts paper production in Europe enticing greater availability of raw material for Indian Paper Mills.

New Delhi | 24 September 2022 | The Pulp and Paper Times:

the sluggish demand of packaging grade papers i.e. kraft and duplex is slowly bringing down the price of domestic waste paper price. The price of imported waste paper has fallen between $ 150 to $ 200 per tons on European OCC and soft mix grades since March.

Talking to The Pulp and Paper Times, Indian Recovered Paper Traders Association (IRPTA)’s President Mr. Naresh Singhal says, “After the break of past two years it was expected a speedy recovery for packaging grade paper mills and also the recovered paper suppliers in Kraft and Duplex board paper mills, Unfortunately, this dream could not get success due to lack of demand of finish Kraft paper and Duplex board.”

“Under the pressure of rising inflation, the festive season seems to have crushed badly. Peoples are much more interested to spend money on essentials rather than luxury,” he said.

It has been observed that rates of finish Duplex board and also recovered paper bottom grades like duplex cutting dai, DMC, bottom, old books mix, old Books and Unsorted Books, Sorted Books, decreased approx Rs 1500/ PMT to Rs 2500/ PMT in different grades and different mills during in the beginning weeks of September.
Mr. Singhal informed that as per the information received from the association members, in the last 10 days rates of imported waste paper for OCC Europe has come at $140/145 per ton, while soft mix waste stays at $125/130 per ton.

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The second foremost reason of dropping the imported waste paper is halting production of European paper mills in absence of a smooth energy supply due to war encroachment. 

As reported by Austropapier, companies with energy-intensive production are currently spending up to ten times more on electricity and gas than they did last year. The extremely high electricity process driven by the energy crisis in Europe has forced companies to halt their production.

According to experts, the energy crisis is forcing paper mills in Europe to cut down their production or shut down, which clearly indicates the greater availability of waste paper as traders have no option but to sell the recovered paper at a lower price to mitigate their losses and empty the storage areas. 

This could be an opportunity for Indian paper mills also to tap the demand of European market arising out energy crisis. The cheap raw material has brought back the Indian paper manufactures under the comfort price feasibility for export. “It is expected that export of paper to overseas destination may resume soon,” Mr. Singhal informed.
Arrivals of waste paper in Kraft and duplex manufacturing units are at very good levels. Material arriving to mills is much more than it's currently working required.

Mr. Singhal added, “In my personal opinion, due to import of low-cost waste paper, chances of export of finish Kraft and duplex board increase from November onwards giving a boost to Indian paper mills.

Prices of recovered paper in this segment started declining since 2nd/3rd week of April due to better availability of imported waste paper at lower price and elimination of demand of finish paper from the market. Recovered Paper prices went down to the extent of 25% to 30%.

“By the end of 1st week of August, it was the starting of festival season all of a sudden market rates of Kraft waste paper and finished paper went up by approx Rs 2 to Rs 3 per kg higher side. It was expected that festival season following marriage season will go with great enthusiasm and skills providing good opportunities to work,”

“But unfortunately since last couple of week or so market again is suffering from the problems of rates decrease in waste paper and also finish paper and board.” He added.
 

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