Pricing power returns for paper makers on costlier imports | OptionsTip

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Since January, most paper companies have raised prices at least twice, believing they see a demand-supply balance returning and imports getting costlier. Prices of most varieties have gone up by three to four per cent; over a year, by eight per cent, on average.

A higher price for wood pulp globally has had a big role in making imported paper costlier. The price has risen in three months by about 20 per cent, to around $600 a tonne. Said an official from a top-grade mill, “Indian companies are less dependent on imported wood pulp; they have their own domestic arrangement.”

Most paper companies did well in the December quarter, on revenue and profit. Expectations are higher for the March quarter; with the demand season for education books also having started. And, more increase is expected in the price of imported paper.

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Pricing power returns for paper makers on costlier imports | OptionsTip.