For most of the past ten years, despite the high GDP growth rate of India’s paper industry (www.ippstar.org), it has always been in crisis. It alternately praised the government and sought government concessions. The Covid-19 pandemic has virtually eliminated publication paper, known as “writing and printing” paper, which includes newsprint.
When the pandemic has not yet been fully controlled, the economic stagnation and the limitation of the economy continuing to return to full production have meant that the newspaper printing industry has been hit hard and the output of textbooks has plummeted. Schools in many parts of the country are still closed, and there is a lack of clarity when they physically open again. Bookstores in many parts of the country are still closed. However, in Kerala, the bookstore was declared essential and allowed to operate within the scope of the agreement shortly after the March blockade.
Single-carton packaging continues to drive the demand for paperboard from gray paperboard to better varieties, including SBS and FBB whiteboard paper, which account for a certain proportion of imported pulp. Another area of packaging that has flourished during the pandemic is corrugated packaging. Brown boxes are used for home delivery services ranging from fruits, vegetables and meat products to local suppliers to ready-to-eat meals at home, and luxury goods and furniture from Amazon and Flipkart.
Recycled corrugated paper (called Kraft paper by some) has always been the most important part of Indian paper production. India’s current total paper output is about 18 million tons, while the total output of recycled corrugated paper exceeds 8 million tons, and its growth rate is better than other varieties. In the past, recyclable liners and corrugated boxes were sold at low prices, except for those who had the future.
In the past ten years, the high-end areas of Indian corrugated box production have improved significantly. The higher specifications of large consumer product companies and exporters drive quality, and these companies and exporters are unable to ship their products into crooked boxes with odors and other problems. The arrival of Flipkart, Amazon and IKEA has also put forward healthier demands for consumers who are critical to quality. In addition to importing better paper and corrugating machines, some organized participants have also upgraded raw materials and technology, especially in southern and western India.
An article published by Suresh Iyengar in “Business Magazine” quoted Lalit Garg, chairman of the Indian Material Recycling Association (Paper Committee), who said that the price of recycled backing paper (they called kraft paper) with a burst factor of 18 bf is now The price before reaching Covid was 27 rupees per kilogram. In the early days of a pandemic and lockdown, the price of renewable liners dropped to 19 or 20 rupees. Due to insufficient demand for writing and printing paper, some paper mills have also begun to manufacture recyclable interleaving paper to absorb expenses and keep their paper machines running.
Since June, the demand for liners has recovered rapidly and the price of waste paper has begun to rise, which has forced paper mills in most parts of western India to raise the price of finished products to the previous level of 27 rupees per kilogram in Kovic. Making high-quality corrugated cardboard requires good recyclable liners, glue and chemicals, and proper technology. The recycled backing paper needs waste paper, and waste paper is also in short supply and has been imported throughout history.
Ironically, with the continuous improvement of Indian corrugated board producers and liner suppliers, recycled liner paper mills have become competitive exporters. In a recent papermaking industry webinar, they publicly stated that exports are necessary to maintain domestic remuneration prices. It is further ironic that in recent months, several batches of recycled liners from India have been exported to corrugated paper mills in China, mainly from western India.
It is said that China banned the import of waste paper and plastics a few years ago, but it is said that it has re-entered the waste paper market, which has increased global demand for waste paper and pushed up the price of waste paper, ranging from US$200 to US$200. Wait. 220 per metric ton. Industry sources also said that ocean freight has risen by US$100 to US$150 per ton in the past month. In the continuous triangle of commodity suppliers, liner and corrugated box manufacturers, the idea is how to increase the price of recycled liners by another rupee, in other words, how to increase the cost to rupee. 28 or Rs. On the 29th, when box manufacturers and purchasers were unwilling to bear higher prices.
Post time: Dec-29-2020