Top paper mills implement fresh price hikes as pulp, logistics and currency costs rise; pulp prices are expected to go up by $20–30/mt

Top paper mills implement fresh price hikes as pulp, logistics and currency costs rise; pulp prices are expected to go up by $20–30/mt

The Pulp and Paper Times

Major paper and packaging board manufacturers have announced nationwide price revisions across their product lines to offset escalating global cost pressures. Driven by continuous inflationary surges in raw materials, high energy expenses, and severe geopolitical disruptions impacting ocean freight routes, paper producers report that internal cost-absorption measures are no longer sustainable. Additionally, historical lows in local currency exchange rates have significantly driven up the cost of imported pulp and key chemicals.

In its recent notification, JK Paper stated that, “We would like to bring to your kind attention that there has been no significant relief in the costs of our key raw materials. The continued increase in these costs is primarily attributable to the escalated logistics costs and high currency exchange rates. These factors are significantly impacting our overall input costs and have placed considerable pressure on our manufacturing and operating expenses. We have carried out a detailed review of the various cost components and, despite our continuous efforts to control and absorb the increased costs through internal efficiencies and optimization of operations, it has become increasingly difficult for us to continue at the existing rates.”

In its circulars and trade notifications to channel partners and dealers dated 21 August 2026, Bilt Graphic Paper Products Limited (BGPPL) has stated that, “The global fibre market is showing signs of recovery. Woodchip prices in Asian markets have already increased by around $40–50/MT BD CIF, and pulp prices are expected to go up by $20–30/MT early next week. This upward movement in fibre prices is an indication that the prolonged correction has bottomed out.”

At the same time, energy costs remain substantially higher, while freight and logistics costs remain outlier on the cost side. Ongoing geopolitical uncertainties are adding further pressure on global supply chains. Current ocean freights in comparison to the pre-West Asia crisis are in the table below:

“In addition, the INR exchange rate continues to remain at historical low levels, significantly increasing the cost of imported pulp, chemicals and other key raw materials, including the finished product – paper,” BGPPL stated.

Century-ITC stated in its circular that, “Over the past few months, we have witnessed substantial inflationary pressures across key cost components, including raw materials, energy, logistics, and freight. The current high exchange rate continues to put significant pressure on our margins, further increasing our cost burden. While we have consistently undertaken measures to improve efficiencies and contain costs, the ongoing escalation has significantly impacted our operating economics.”

On average, prices across all grades and packaging categories are increasing by approximately Rs. 1,800 PMT (with individual revisions ranging from Rs. 1,000 to Rs. 2,250 PMT depending on the mill and grade).

JK Paper has increased prices on its paper and paperboards, ranging from Rs. 1,000 to Rs. 2,000 per MT. The price increase will be effective on order placement from 24th August 2026.

BGPPL said, “Looking at the current cost dynamics, and the upcoming season, we shall apply P1 (+ Rs. 1,000 PMT) w.e.f. 01.09.2026 across all grades. All pending orders as of 01.09.2026 shall be converted to P1. We expect the market to remain in momentum, and post finite allocation at P1, we shall apply P2. Kindly inform your customers accordingly and plan bookings and dispatches accordingly.”

“The revised prices from Lalkuan and all QSC centres are Rs. 2,250 PMT on Prime series, Omega series, Cuppa and Optifold NS,” Century-ITC said.
 

Published at : Aug 22, 2026 06:19 AM (IST)

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