From 2008 to 2010, the printing and writing paper industry in India expanded by more than 1.6 million tonnes, an increase of 30% to 40%. For paper manufacturers 2012 has been full of mixed blessings. They were faced with high input prices and pressure on margins, given their inability to pass on costs in a slow market. On a positive note, though, the market has absorbed the expanded capacities and new supplies in printing and writing paper, demand is set to pick up towards the year-end and things are not as bad as in 2011. A look at the stock prices of leading paper mills is an indicator of the trend. The financial results of most paper companies have been ‘troublesome.’ This has been primarily due to the unrelenting increase in cost of raw material and inputs, including coal and pulp wood. The costs could not adequately be recovered from the market. “The demand is OK, but the issue is more about input cost squeeze,” Singhania said.
Friday, December 21, 2012
Paper-Makers’ In India-Outlook Bright
http://www.thehindubusinessline.com/industry-and-economy/papermakers-margins-crumpled-but-outlook-bright/article4218287.ece?homepage=true&ref=wl_home
From 2008 to 2010, the printing and writing paper industry in India expanded by more than 1.6 million tonnes, an increase of 30% to 40%. For paper manufacturers 2012 has been full of mixed blessings. They were faced with high input prices and pressure on margins, given their inability to pass on costs in a slow market. On a positive note, though, the market has absorbed the expanded capacities and new supplies in printing and writing paper, demand is set to pick up towards the year-end and things are not as bad as in 2011. A look at the stock prices of leading paper mills is an indicator of the trend. The financial results of most paper companies have been ‘troublesome.’ This has been primarily due to the unrelenting increase in cost of raw material and inputs, including coal and pulp wood. The costs could not adequately be recovered from the market. “The demand is OK, but the issue is more about input cost squeeze,” Singhania said.
From 2008 to 2010, the printing and writing paper industry in India expanded by more than 1.6 million tonnes, an increase of 30% to 40%. For paper manufacturers 2012 has been full of mixed blessings. They were faced with high input prices and pressure on margins, given their inability to pass on costs in a slow market. On a positive note, though, the market has absorbed the expanded capacities and new supplies in printing and writing paper, demand is set to pick up towards the year-end and things are not as bad as in 2011. A look at the stock prices of leading paper mills is an indicator of the trend. The financial results of most paper companies have been ‘troublesome.’ This has been primarily due to the unrelenting increase in cost of raw material and inputs, including coal and pulp wood. The costs could not adequately be recovered from the market. “The demand is OK, but the issue is more about input cost squeeze,” Singhania said.
