According to the local media of India on November 29, 2020, the development of the second wave of epidemic in Europe has brought great impact on the waste paper market in India. It is estimated that there will be a gap of 2 million tons of waste paper in India. Due to the disruption of the imported waste paper supply chain, the price of waste paper is expected to rise by 2-2.5 rupees / kg in the next few days.
Mr. Abhishek Agarwal, head of the resonance paper mill in Gujarat, India, said: “in the next two to three months, the problem of waste paper will continue to exist, the blockade caused by the epidemic is still not completely lifted, the import is interrupted, and shipping companies are increasing the freight to $100-200 per container. Our export orders have also suffered as a result of the increase in freight volume. “
Many shipping companies announced an increase of $100-150 in general freight per container in mid November, and another round is expected to take effect from early December. Containers are piling up in the United States and Europe, but the speed of returning to Asia is slow, which is very unfavorable for import and export trade.
Mr. Bansal, head of Maruti paper mill in shamli, northern India, said: “due to import restrictions, the supply and price of waste paper in India are under great pressure. Although the recovery of waste paper in India was reduced due to the impact of the epidemic in the early stage of the epidemic blockade, in the later stage of the blockade, local waste paper recycling in India has shown an obvious upward trend, but it is still unable to make up for the shortage of imports Gap. “
As a result, many local Indian paper mills have no choice but to reduce paper production according to the supply and inventory of raw materials. According to the prediction of relevant experts, the shortage of waste paper in India may continue until the end of January 2021.
Since early October 2020, container freight prices on most routes in Asia have more than doubled due to tight capacity. Trade sources said the shortage of vessel capacity and trade disruption in the Asian container transport market are affecting waste paper flow and prices in the region, with little hope of restoring capacity balance in the container market before the lunar new year.
In addition, the freight price fluctuates greatly. A freight broker once said: “at present, the freight rate fluctuates frequently, the carrier’s quotation is only valid for a week, and the price will be recalculated after the expiration.”
On the issue that the price of waste paper is about to rise, Mr. Bansal predicted that the price of waste paper in India would rise further, while the shortage situation would worsen. He said that he had never thought that the price of waste paper would rise to 17 rupees per kilogram, and hoped that the price could stabilize in the future, because the rise of waste paper price led to kraft However, the increase of input cost will have to transfer to customers, which will affect the whole industry chain.
Post time: Dec-09-2020