2010 India Paper Market Analysis

By Frbiz Tian

Editor’s note: The Indian paper industry currently ranked 15th in the world, and this paper analyzes the rising price of paper, pulp and printing industry, the shortage of rapid growth to the impact of the Indian paper industry.

As the Chilean pulp production account for about 8% of the world around, so the occurrence of earthquake with Chile and pulp plant shutdown, global markets have emerged pulp shortage. And no one is able to determine when these plants to return to normal production, exports also encountered certain difficulties.

In addition, many paper mills in Finland because the last two years are the longest duration of a workers strike and shut down loading and unloading, and fortunately this from the March 23 start of the strike has ended, its impact soon appear. It is understood that bleached soft wood pulp in North America, the transaction price has been from January 2010 up to 624 U.S. dollars per ton in the March 9 875 U.S. dollars per ton.

The pulp prices is mainly the shortage of global market pulp products caused. According to the paper and paper products from the Commission, and industry sources, the global pulp manufacturer’s inventory is now 1 to 6 from the 2009 average of 39 month world fell in 2009 7 to 12 month 26 days. Occur in most parts of the Northern Hemisphere cold weather around the world to bring a timber mill procurement difficulties, and exacerbate the tension of logistics and transportation delays.

Highest price the U.S. government has been from the beginning on January 1 this year to stop pulp manufacturers to 125-150 dollars per ton of paper Black Liquid with subsidies, which makes the pulp manufacturing costs rise in the past two months, at least 150 dollars. Therefore, as the world’s largest producer and consumer of brown paper, some U.S. paper mill on the rise in the use of export markets also caused shortages and price increases. In addition, disruption of shipping goods to the paper pulp prices have also created the conditions, so the current price of paper has changed from a year ago, surged to 750 U.S. dollars 360 U.S. dollars and is expected to exceed 1,000 U.S. dollars mark.

In this case, the number of international paper suppliers announced price increases implemented on paper. And, like other daily consumer goods, the increasing market demand in China will further promote the paper prices. India paper, India is now printing books and laptop manufacturers to market demand is relatively stable, they often require paper suppliers to provide three months of inventory to meet start from June next year’s production and demand.

In raw materials, according to a paper from the large Indian domestic manufacturing enterprises professionals, two paper pulp and waste paper raw material prices which in the past three months has doubled. India, the paper mill is now generally packaged in brown paper as raw material. As long as the waste collection stations sold to paper mills, but the number can not meet production needs, so there is a large part to rely on imports.

As India’s domestic waste generated by far not meet the production needs, so some of the country from the United States, Europe and overseas countries import 50% of the paper. Looking to the future now, India has become one of the world’s fastest-growing market. India paper from the scale, it ranked 15th in the world, but the output only to 2% of the world. With Ballarpur, ITC and JKPapers other paper companies to increase investment in India, India’s paper production is expected to rise in 2015 to 3% of the world.

Then, the printing company should be upward pressure on prices of raw materials transferred to the consumer? Some well-known printing companies in India there have been closed down, many SMEs also face labor shortages and bad debt distress, and if paper prices rise further in short supply, but how can these companies survive it? It is worth every one of us food for thought.

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Source: isnare.com

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