The increasing trend of absorbent Kraft paper prices has been adding another burden in the decorative laminate industry. The demand and supply in Kraft has been a big mismatch noted in September month, taking a heavy toll on dependent industries like decorative laminate. This segment is reported to hit again and disturbed due to supply and price mismatch. Industry report that The B grade Kraft Paper prices have been reaching toward Rs 38 a kilogram which was hovering in range around Rs 32,that is around 20% of jump in prices in a month.
The decorative laminate industry is captive to circumstances at present due to which, finished product (HPL) prices have reported to rise again in October month by 5 to 7 % varying product and company. Many mid-sized companies are making cash losses and won’t be able to sustain
The Kraft paper producers reason that ‘hike in Kraft paper cost is due to the China factors and non- availability of Containers. Also, collection of scrap paper is not happening due to which the wasted cartons, etc are not coming back into the supply chain for recycling. Paper Mills cite the above two main reasons for their increase in input cost and hence the rise in the price of their final product, the Kraft paper.
Industry reports that the price increase in Kraft Paper is more in Northern India, whereas Gujarat based units are not receiving much prices and they are getting at approx Rs. 34 per kg. It is also reported that since Indian Recycled Kraft Paper producers have received huge orders of Pulp sheets from China at good rates, it is one of the big reasons for shortage of Kraft Paper in India. Producers indicate that the prices will not come down to the previous level of below 30 in near future and it will continue to above 30 range.