I write about one month back that current market scenario related to price is not good. But now a days , position of price getting worse then ever. In clear terms it is a price war specially in 14/16 bf waste base semi-kraft paper. For example, If any mill decreases it's rate by 0.50 paise per kg., the very next day, other mills also slashes rates by .60-.75 paise per Kg. This in turns becomes a vicious circle.

Now a days a typical situation is seen in the Paper market. Paper mills shut down for their demand of rate increase on the other hand consumers are not interested in buying even in old rates. They are badly suffer from labour problem while paper mills who are affected some time back by power cut, feel relief as power position get better now a days.
In my personal view mills should not resist on rates, they sell their products as per market demand.

I would like to draw your attention about a new trade practice adopted by paper mills. They select a dealer or two and giving him a discount of Rs.1/= or in some cases up to 1.50 along with a extended credit period and told rest of the dealers much higher rates then these dealers. Their submission in this regard is that they lift higher quantity then normally dealers do. Some mill offer trip to Singapore / abroad to these dealers as extra advantage. Even some mills do it in some very personal relationship.

Today mill owners are happy that their decision is very good but they are not understanding the fact that:

1. Small & medium dealers are ruined slowly by these dealers in a span of time.


2. After some time these big dealers will dictate mills. They pay as per their desire, they give rate as their wish, even they intercept mill's production or quality matters.


3. The fore most factor is that these dealers generally sold the material by their salesman & not checking the credit worthiness of most of the buyers, they make outstanding in crores to a single party or even giving material to a defaulter, because they have to lift huge quantity . When their money in not coming back in time or fully, how will they give committed payment to the mill.

Mills should think twice or even thrice, because time will not give chance to think again.

after a long gap I once again think to express my feelings about current situation in paper market. In last one month rate of paper are gone down, they even go very steeply but Govt's Electricity Departments save paper mills as they are not giving electricity more then 10-11 hour in a day. However some mills having their own power genration but not all.
Today once again paper mill owners sit together and plan to increase Rs.2/= per kg. this is in my opinion not a right time to increase because like mills, convertors are also sufferer of electricity and their major problem is labour shortage. Also they have not much orders to supply. Mills should decide wisely & convertors / delaers should not make panic buying. Even mills should think that in feb. / march they said that waste paper prices are too high and they are forced to increase. But now a days waste is very cheap in comparision to feb./march. Dealer is selling paper even lower rate then he puchase only to rotate his circle.

Only 2 days after lifting the ban on puchases, market slasheded steeply. Few day back where mills who were demanding 6 to 7 rs. per kg increase & telling that they have already booked for whole april have suddenly changed their attitude. Today they call 4-5 times in a day & demands for order with a increase of 5 rs. or even lesser which is a very dramatic scene.
It is also not good of our buyers (convertor), who fought for their rate increase a long way and now this news may undo their efforts.