11 November 2024
Paper mills are now operating with virtually no margins.
Paper mills are now operating with virtually no margins. The upcoming publishing season may soon create upward pressure on prices.
The Indian paper industry is facing significant challenges, with mills operating at minimal margins due to falling paper prices and a sharp rise in wood costs (up 50% since April 2024). Volatility has been particularly high in recycled paper mills. While the domestic market has been shielded by high shipping costs and local production, a surge in paper imports—especially from China and ASEAN countries—threatens profitability. The upcoming publishing season could drive up demand and prices, offering some relief, but the industry remains under pressure from shifting global demand and increased competition.