The blockade imposed during the second pandemic affected almost every sector of the world economy, including pulp and paper. This has brought serious supply chain disruption, resulting in shortages and challenges in the industry. The prices of all kinds of paper in the industry are rising, which is affected by many factors, such as the basic prices of raw materials in the paper industry. Therefore, the price of finished paper has risen sharply recently.
In the past few months, India’s paper industry has been struggling with the shortage of waste paper supply from the United States and Europe, which is one of the main raw materials for paper mills. The global shortage of shipping containers, mainly caused by the epidemic, has also exacerbated the inflation of shipping and container prices and increased delays.
In March, Pramod Agarwal of the Indian Association of agricultural and recycled paper mills called the crisis a “serious problem” and accused waste paper suppliers of raising raw material prices. To this day, he is still right. However, Agarwal complains that waste paper suppliers control prices, so paper mills have no choice but to cut paper production based on raw material supply and inventory.
He also threatened to provide the government with a list of waste paper hoarders. He once said: “it is necessary to expose the illegal activities of illegal suppliers, who artificially create a shortage of waste paper supply in China, in order to reduce the excessive pressure on paper manufacturers.” Major paper manufacturers in India and abroad have announced that they must or will increase the prices of their products. They include bilt graphic paper products Co., Ltd., century pulp and Paper Co., Ltd., Sappi Europe in Belgium, Jinguang paper in Indonesia and Chenming Paper in China. Bilt is raising the price of its Indian art paper across the country.
Industry officials also said that in the past month and a half, the price of the global paper industry has increased by 6% – 8%, and the rupee has also depreciated in the same period, which gives Indian companies room to raise prices.
Similar to the pulp and paper industry, due to the supply chain constraints caused by the pandemic, the ink industry has also seen a sharp rise in prices recently. The latest price increase comes from Toyo ink, which will take effect from June 1, 2021. In a letter to the company’s stakeholders, suppliers and customers, indjit Singh, general manager of Toyo ink India, said, “several market factors have further led to price increases.”., As a whole, the price of raw materials for sheet fed offset printing ink rose sharply again.
Last month, the prices of cooking oil, vegetable oil, phenolic resin and pigment rose by 20% – 40%“ In these cases, there is force majeure for raw material suppliers, “Singh said.” we have tried to maintain the current pricing for as long as possible, but we cannot continue to do so. ” The company will increase the price of sheet fed offset ink by 25 rupees per kilogram, it added. The exact increase varies by product and market segment, but on average, the price of all process ink series will increase by 25 rupees / kg.
In Europe, Sappi Europe announced another price increase, this time for all kinds of cardboard. The company said the increase was 8% – 10% and will take effect from July 1, 2021. In a statement, Sappi said: “the continued sharp rise in raw material costs, especially pulp, chemicals and energy, coupled with high freight rates, makes price adjustments inevitable.” The company said its sales team would contact customers to “discuss details and support implementation.”. Last week, the company raised the price of all its coated and offset paper in Europe by 7% – 10%. The company’s first price increase was announced in April, and the price increase was mainly for wrapping paper and special paper, which took effect in early April.
Post time: Jun-24-2021