Price and demand scenarios in the kraft paper industry: Insights from the IRPTA President

Price and demand scenarios in the kraft paper industry: Insights from the IRPTA President

-The rates for finished kraft paper may rise again soon
-Kraft paper mills in Western Uttar Pradesh have proposed a planned production halt from September 28 to October 2
-The difference between kraft waste paper and finished kraft paper prices is hovering around Rs. 12.50 to Rs. 13 per kilogram
The Pulp and Paper Times:

The kraft paper industry in India is a significant part of the country's broader paper and packaging sector. Kraft paper, known for its durability and resistance, is primarily used in the production of paper bags, packaging, and corrugated boxes. The industry has been growing due to the rise in demand for eco-friendly and sustainable packaging solutions.

“Due to the heightened demand in the kraft paper and packaging segment over the last two months, mills in this sector are operating at full capacity. After a prolonged period of recession, automatic box-making units, which manufacture packaging boxes, are now functioning at their full potential. In northern India, kraft paper mills are operating based on their individual production capacities,” Mr. Naresh Singhal, president of The Indian Recovered Paper Traders Association (IRPTA) said.

Mr. Singhal described that despite the surge, kraft paper mills in Western Uttar Pradesh have proposed a planned production halt from September 28 to October 2, following the ongoing process of scheduled shutdowns over the past few months. This stoppage is being organized with the intent to exert pressure on the prices of finished kraft paper. Mills have already begun attempts to secure new bookings at higher rates, which could potentially rise by Rs. 1 per kilogram.

“Currently, the difference between kraft waste paper and finished kraft paper prices is hovering around Rs. 12.50 to Rs. 13 per kilogram. During the shutdown, there is also an expectation that the rate of waste paper might decrease by up to 50 paise per kilogram”

“Prices of finished kraft paper in Western Uttar Pradesh and Northern India mills have surged by up to Rs. 7 per kilogram over the past four months. During the same period, the rates for kraft waste paper (corrugated waste) have increased by only Rs. 2.5 per kilogram, He said.

Mr Singhal Currently, the price difference between corrugated waste paper and finished kraft paper is approximately Rs. 12 to Rs. 12.50 per kilogram. Four months ago, this difference stood at Rs. 8 per kilogram,”

Most kraft paper mills already have substantial orders in hand. For new bookings, these mills are pushing for further price increases, suggesting that the rates for finished kraft paper may rise again soon.

Talking to The Pulp and Paper Times, Mr. Ankit Bandi, Director of Jayant Marketing Pvt Ltd said, “Kraft Paper demand is growing steadily at 11%, but the continuous rise in production and stable recycled pulp prices should keep Kraft prices stable for the next 3-4 months. A Strong government willingness for implementation of an effective Ban on single use plastic is desired. This will definitely be a big boost to the industry and towards sustainability,”

“The Recycled based duplex market is growing at a rate of 7.2% approx. but the rates will remain stable due to expansion of capacities domestically and internationally which will heighten competition in the category and will also reduce the export opportunities,” Mr. Bandi said.

In summary, the packaging paper industry in India is thriving, backed by strong demand from growing sectors like e-commerce and FMCG, while adapting to sustainability trends and regulations. The future holds significant potential for further growth, supported by innovation and environmentally conscious packaging solutions.
 

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