Paper manufacturers implement phased price hikes amid cost pressures as hardwood pulp inflation persists

Paper manufacturers implement phased price hikes amid cost pressures as hardwood pulp inflation persists
- in Q4, paper prices should increase, and raw material prices should also soften to bring balance
- Global pulp markets remain firm, with hardwood pulp prices sustaining north of USD 610 PMT.
- As India increasingly aligns with Asian markets, it is important to note that price revisions in Asia typically occur in steps of USD 30–40.

The Pulp and Paper Times

Rising input costs, firm global pulp prices, and strong seasonal demand have prompted major paper manufacturers to announce fresh price increases in early 2026. Escalation in pulp, chemicals, fuel, power, and logistics costs, coupled with currency depreciation and supply-side disruptions, has significantly impacted cost structures across the industry. At the same time, healthy demand from publishing, notebook, and institutional segments continues to support market momentum. In response, leading players such as BGPPL, BILT, and Asia Pulp and Paper have initiated phased price revisions to partially offset cost pressures and ensure long-term business sustainability amid evolving market dynamics.

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated January 19, 2026, that with reference to our earlier circulars and market communications issued from time to time regarding the sustained escalation in input costs and the evolving market dynamics, we wish to inform you that the cost environment continues to remain extremely challenging.

Global pulp markets remain firm, with hardwood pulp prices sustaining north of USD 610 PMT. Recent transactions indicate continued tightness in availability, driven by supply-side disruptions and maintenance shutdowns. Simultaneously, the Indian Rupee continues to remain under pressure against the US Dollar, impacting raw material costs, especially for BHU operations with high import dependency.

“The market continues to remain strong on both volume and seasonality. Pulp prices have crossed USD 600, with recent bulk purchases of approximately 15,000 MT concluded at ~USD 610 in India last week. This represents an increase of nearly USD 120 over the lowest levels witnessed 4–5 months back. In addition, the INR depreciated significantly against the USD, further aggravating raw material costs, particularly for BHU, which has a ~65% import dependency. Fixed costs also continue to go up organically,” BGPPL stated in its earlier circular dated January 13, 2026.

“Beyond raw material inflation, ongoing geopolitical developments and the rapidly evolving global economic order are creating persistent volatility across international trade, contributing to the inflation of our overall operating costs.

On the demand side, market momentum continues to remain healthy, supported by strong seasonal demand from publishing, notebook, and institutional segments, coupled with steady order inflows across writing and printing grades,” BGPPL stated on January 19, 2026.

In view of the above factors, and to partially offset the sustained escalation in both organic and inorganic costs, we are implementing P5 (+Rs. 1,000 PMT), applicable across all grades and both units (BHU & BPU), with effect from 01.02.2026. As India increasingly aligns with Asian markets, it is worth noting that price revisions in Asia are typically implemented in increments of USD 30–40. Keeping consumer sensitivity in view and to ensure a smoother transition, our price increases are being implemented in increments of USD 10. With P5 effective from 01.02.2026, the cumulative increase from PO now stands at USD 50 only, BGPPL stated.

As India increasingly aligns with Asian markets, it is important to note that price revisions in Asia typically occur in steps of USD 30–40. Keeping consumer sensitivity in view and to ensure a smoother transition, our increases are being implemented in increments of USD 10. While P4 will be implemented effective 22.01.2026, the cumulative increase from PO now stands only at USD 40.

Please note that prices applicable at the time of invoicing shall prevail, irrespective of the order placement date, unless specifically confirmed otherwise by the Regional Sales Office. Given the current environment, where both cost and demand drivers are changing rapidly, further price revisions may be implemented at short notice.

Talking to The Pulp and Paper Times, Mr. Rajnish Kumar Gera, CEO–Paper and Energy, Trident Group, said that now is the right time for the market to increase prices. Considering the huge increase in raw material prices—whether we talk about wheat straw or wood-based raw materials—even though we are not using wood directly, wood-based prices have gone up drastically. At the same time, price calibration has not happened in the final product, which is a challenge.

“Hopefully, in Q4, paper prices should increase, and raw material prices should also soften to bring balance,” he said.

BALLARPUR INDUSTRIES LIMITED (BILT) informed all channel partners and dealers in its circular dated January 20, 2026, that we would like to take this opportunity to inform you that our manufacturing plant commenced operations in August ’25. Since the start of operations, we have made every effort to maintain stable and competitive pricing, despite continuous volatility in raw material, fuel, power, and logistics costs. Our objective has always been to support our valued channel partners by absorbing cost pressures to the extent possible.

“However, over the past few months, there has been a significant and sustained increase in input costs, including pulp, chemicals, fuel, power, and other operational expenses. These increases have now reached a level where it is no longer feasible to absorb them without impacting business sustainability.

In view of the above, be informed that we are compelled to implement an upward price revision of Rs. 2,000 per MT on all writing and printing paper varieties, effective January 23, 2026.

We request you to kindly take note of this revision and communicate the same to your customers to avoid any inconvenience. Other terms and conditions will remain the same as earlier.

We sincerely value your continued support, cooperation, and understanding, and we look forward to strengthening our association in the times ahead,” BILT stated.

Asia Pulp and Paper (APP) informed all Indian channel partners and dealers in its circular dated January 15, 2026, that pulp prices and freight costs continue to rise, exerting tremendous pressure on cost structure and our ability to serve you. For all orders received after January 25, 2026, please reconfirm with your local sales team whether these can be included in February production. This will also attract a further increase of USD 20 per MT.
 

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