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.
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yesterday most awaited decision was taken by
NIKDA. All member present nominate
NIKDA Executive body as under:
Sh
Suresh Chand jain will be Chairman of the Association, sh
Mukesh Gupta will be President , sh.
Akhil Gupta will be Secretary & sh. Ram
Babu Goel will be Treasurer. Subscription of the association will be 5100/- per member.
Soon constitution of this body get prepared & then we will register it.
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Today, at 12 p.m. Northern India Kraft paper Dealers' Association has arranged a meeting to review the position of Market.
In my opinion NIKDA should open the ban on purchases as most of the mills or say their associations came to a realization that a decorum of rate will be maintained.
Apart from this it is high time to nominate the executive body of this forum for the further smooth working.
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FRIENDS,
One of our friend Mr. Pankaj Aggarwal from Noida send us the under mention data:
The landed waste paper (OCC) price from USA and Dubai for the year 2008 and 2010 is shown below:
| | US OCC | Dubai OCC |
| Year | 2008 | 2010 | 2008 | 2010 |
| JAN | 260 | 235 | 225 | 200 |
| FEB | 285 | 280 | 248 | 230 |
| MARCH | 290 | 300 | 250 | 250 |
| APRIL | 275 | | 240 | |
| MAY | 260 | | 220 | |
| JUNE | 255 | | 220 | |
| JULY | 270 | | 240 | |
| AUG | 250 | | 215 | |
| SEP | 245 | | 210 | |
| OCT | 230 | | 200 | |
| NOV | 135 | | 103 | |
| DEC | 110 | | 120 | |
| Average | 239 | | 208 | |
Please note that this years OCC prices for Jan Feb and March are not an abnormal rate for which the mills are making so much noise.
In the year 2008 Jan - March and this year 2010 Jan - March price are same.
However the increase in paper price in both years are not same. Even after making adjustment for the $ Power, Coal etc. the current price rise is not justified on part of the mills.
Hence a strong correction is expected and requested in imported waste based paper prices starting from May 2010 onwards.
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Meeting of North India Kraft paper Dealers Association (NIKDA) was held yesterday and once again dealers stick to their decision "no new purchase till 12-04-2010". The unity and bonding is very good. More then 100 dealers joined the forum and agreed that it is essential in the interest of trade to close/stop all purchases.
Although in my opinion under present rate increase scenario, market is flooded with material because dealers & converters, both made panic purchase. They purchased much more quantity then they required. This would help mill owners to increase prices further. But now dealer & converter, have started feeling the shortage of space as well as finance at some places. Converters are not in a position to repay as per agreed terms because they bought excess material then they required, besides due to closing of financial year there is already a financial crunch.
But I firmly believe that this decision is very much beneficial for the PAPER TRADE.
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