The Hindu Business Line : Newsprint prices set to go up once again

ARMED with the firm undertone in the international newsprint market, domestic manufacturers are contemplating revising the prices of all varieties of newsprint once again, effective April-June quarter.

Incidentally, all the manufacturers revised prices on an average by Rs 1,000 per tonne during the current quarter (January-March) in tandem with the rise in prices in the international market.

According to paper industry sources, prices of cream woven variety white printing are also to be revised in anticipation of the tight supply situation vis-à-vis an additional demand for paper during the ensuing general elections in the country.

The sources said that the landed cost of imported newsprint would have been more if there was anti-dumping duty on the US newsprint as applicable in China.

As against the current newsprint prices in the US market of $450 (Rs 20,000) to $460 per tonne, the offer price for the same newsprint to India is about $400. The US manufacturers/exporters are believed to be clearing their surplus inventory, even subsidising export prices.

In view of dumping of newsprint by the US, domestic manufacturers are unable to take maximum price advantage of the international market. However, the sources feel that the availability of newsprint from domestic sources is likely to increase with local manufacturers preferring to increase production to fetch better returns.

They are of the view that the demand and supply gap in the country would remain at about five lakh tonnes in spite of higher production. The domestic newsprint industry has an installed capacity of about 12 lakh tonnes per annum.

But a few mills, which were out of production, might restart following better returns from newsprint. In any case, domestic production might not cross seven lakh tonnes in the calendar year.

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