Paper prices stabilize after hitting its lowest in June-July

There has been an uptick in the prices of writing and printing (W&P) paper since August 10. This change has instilled a sense of positivity within the industry, implying that the decline in rates, which experienced a 25 percent decrease over June and July, could potentially have hit its lowest numbers.

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From August 10 onwards, there has been an increase in the prices of writing and printing (W&P) paper. This development has brought a glimmer of optimism to the industry, suggesting that the downward trend in rates, which had seen a 25% drop throughout June and July, might have reached its lowest point. A reliable source from the trade has mentioned, on the condition of anonymity, that the prices of various paper grades, apart from pulp, are on the rise. This indicates a stabilization in paper prices that had been declining since June this year.

ITC, Bilt Graphic Paper Products Ltd, and Andhra Paper Ltd have dispatched circulars, stating that they are implementing price hikes ranging from ₹1,000 to ₹3,000 per tonne for different paper grades, including boards.

According to a trader based in Kolkata, the cost of paper, which had previously surged to more than ₹90,000 per tonne, experienced a downward trajectory with a decrease of ₹3,000 per tonne in June, followed by an additional ₹4,000 reduction in July. This resulted in a decline of ₹15 per kilogram for large paper mills and a decrease of ₹20 for smaller mills.

Aksheev Agarwal, Director at Paswara Papers Ltd, noted that “there has been a slight adjustment in prices and the upcoming festival season is anticipated to bring about a surge in demand, particularly for corrugated or brown boxes used for packaging various items, ranging from electronics and electrical products to garments.”