NEW DELHI SEPT 1:The government plan to import more coated paper has added to the pressure of the domestic industry forcing its captain to take a series of price cuts in the current financial year and yet not finding business comfortable sells at price cuts in the finding business comfortable sells at prices that are seven-eight per cent less than that of the locally manufactured variety. The volume of imported paper has gone up steeply compared to last year.The monthly average of coated paper import so far this year has been 15,000-16,000 tonnes as against 8,000-9,000 tonnes last year.
Leading the list of the importers is China,followed by Indonesia, according an industry official Both had till recently been a major exporter of the product to the US and Europe. Things went against them earlier and the countries of the Western continent imposed high anti-dumping duties on them. The two East Asian nations have since been pushing coated paper into India in a gig way.
In India this has impacted the margins as well as sales of the country’s as well as sales of the country’s two front-runners in the business Bilt and JK paper.Under pressure both companies went for price cuts three times so far this financial year.the domestic price of coated paper has since April slumped to RS 51,000 per tonnes.
The imported variety still in sales as its price is pegged at RS 47,000 per tonnes.The market size for coated paper in India is estimated at 480,000 tonnes of this 375,000 tonnes is produced locally by Bilt And JK paper The rest are small mills Imports meet the gap .Of left the game tough for domestic producers when it comes to maintaining sales and stabilizing prices.They are also offering discount to select buyers even as they are troubled by a sharp increase in input costs
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