Newsprint prices fall 5% on Chinese imports

Average price fell from Rs 30,000 a tonne to Rs 28,000 since Oct.

Newsprint prices in the domestic market have declined by 4 to 5 per cent over the last three months on account of cheaper Chinese imports and falling international prices.

The average price of newsprint has fallen from Rs 26,000-30,000 a tonne to Rs 25,000-28,000 since October. The decline comes at a time when prices of coated and copier papers are being hiked by leading domestic players.

"The primary cause for declining newsprint prices could be huge stock with big publications or indiscriminate imports, particularly from China," said Raji Philip, president of the Indian Newsprint Manufacturers' Association and chairman and managing director of Hindustan Paper Corporation.

The landed price of imported newsprint is about Rs 1,000-1,500 a tonne cheaper compared with the average domestic price.

"Internationally, newsprint prices have come down from an average $705 a tonne to $670 in the last quarter. At present, imported Canadian newsprint is quoting at $630 a tonne, whereas the Chinese newsprint is available at $580 a tonne," said V D Bajaj, executive director of Rama Newsprint and Papers (RNPL).

According to Philip, newsprint consumption in the country is around 14 lakh tonne, while the production is about 8 lakh tonne. The excess domestic demand is met through imports from Canada, Russia, China and some other countries.

Big domestic newsprint players have lined up capacity additions and the dependence on imports was set to go down. Excessive dependence on imports would be self-defeating for the domestic industry, he said.

The import duty on newsprint is 5 per cent, whereas the writing and printing paper attracts a duty of 12.5 per cent.

"However, the quality of imported Chinese newsprint is not good, as it is not able to withstand high-speed printing machines. Some large publication houses are not happy with the quality of Chinese newsprint," said Philip.

Some Chinese newsprints do not even conform to the definition of newsprint, as it should have at least 50 per cent mechanical pulp.

The falling newsprint prices were due to the cheaper imports from China. Of late, new newsprint capacities have been added in China and they have found good market in India, said S K Bangur, chairman of RNPL and West Coast Paper Mills.

V Murthy, managing director of Tamil Nadu Newsprint and Papers, also saw the Chinese factor behind declining newsprint prices.

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Paper body gets new chief

The Indian Paper Manufacturers' Association (IPMA) has elected Pradeep Dhobale, chief executive of ITC's paper division, as its president for the 2007-08 year.

Speaking at the occasion, Dhobale said, "We need government support to improve and be globally competitive. Import duties on pulp should come down from 5 per cent and industrial plantation should be allowed."

HEADING SOUTH

The average price of newsprint has fallen from Rs 26,000-30,000 a tonne to Rs 25,000-28,000 since October

The primary cause for declining newsprint prices is attributed to huge stock with big publications or indiscriminate imports, particularly from China

The import duty on newsprint is 5 per cent, whereas the writing and printing paper attracts a duty of 12.5 per cent

Newsprint consumption in the country is around 14 lakh tonne, while the production is about 8 lakh tonne