issue October 2022
Dear Enthusiasts,
Trust you are well! We have had a rocky September.
The most colloquial word heard over the last month is
“Price is going down”, however that is not true. The
relief experienced by some of us is because of the
reduction in freights, which has been because of a lack
in demand, and increased container availability as the
containers in the West has now reached the various
Eastern ports. However, in October, to prevent the rates
from dropping, the shipping lines implemented GRI’s
from USD 200 - 400 across trade lines, and have
reduced sailings to balance demand. Owing to the
same, the shipping rates have started increasing as
space gets tight as we head to the hottest time for
shipping in the year.
At the mill front, there has been a drop in various
packaging grades, especially in the month of
September. The input costs of these mills have not
changed and the drop has been primarily owing to
subdued demand. This has been offset by the bigger
Asian Mills taking a forced shutdown to take out
capacity from the market. This has prevented the further
slide in prices, and prices look steady, with local
Chinese packaging prices has already seen an increase
of USD 50 PMT, and it is only expected to get hotter.
Pulp stays buoyant, as supply and demand stay hand in
hand.
Thus prices do not appear to drop further, however, we
would start seeing moderate increases at the flag end
of the year. Mills are prepared to take extended
shutdowns and take out capacity as needed to maintain
market equilibrium. Many mills have announced price
increases of USD 50 - 100 PMT for the month of
October. This increase is owing to increased demand
and lower output. The European crisis on energy does
not look like it will soften, and there will be a long chilly
winter ahead. Keeping the same in mind, there is also
the double whammy of increased interest rates, as the
money distributed by governments during the
pandemic, needs to come back, and inflation is to be
curbed. These stances by various Central Banks will
keep the liquidity tight and might lead to reduced end
customer demand in Q1/ Q2 2023, and it is only by then
we might see a drop in prices. Till then, prices look to
stand their ground or gain ever so slightly.
However, we are in uncertain and unpredictable times,
we hope you procure only what is required! We would
advise against stocking up. The month of October is
also a season of festivals in India and China, leading to
reduced production overall which will also help in
maintaining pricing levels.
We wish all our enthusiasts a Happy Diwali and hope
that you stay blessed and happy.
Thanks and Regards,
Vedansh Gupta
INDUSTRY NEWS
Metsä Tissue Announces Possible Future
Production Shutdowns. It is a result of
extraordinarily high energy costs brought on by
the European energy crisis. With high energy cost
inflation, further production curtailments are
inevitable, which may have an influence on the
supply of everyday Tissue products in markets,
as significant quantities of daily production
losses will occur.
Valmet introduces the Dryer Section
Performance Agreement for Tissue Machines.
Valmet has established a service agreement to
increase the performance and safety of the
Yankee cylinder, hood, and air system as part of
its services offering for tissue makers.
Stora Enso's recyclable and fiber-based wood
foam FibreaseTM can replace polymer-based
foams in packaging solutions. A collaboration
with Nefab enabled Fibrease to be mass-
produced and widely introduced to the market,
and it is already being used by clients.
Mondi, a global packaging and paper company,
has collaborated in a unique way with German
machine manufacturer Heiber + Schröder to
develop a high-speed automated packaging
machine that fits the process, efficiency, and
safety criteria of eCommerce fulfilment
operations.
The Fedrigoni Group and Mohawk Fine Papers,
Inc. have formed a production agreement to
enhance the global reach of their speciality
papers. The Fedrigoni Group is the world leader
in premium labels and self-adhesive materials.
Mohawk, on the other hand, produces some of
the world 's most recognized speciality papers
for designers, consumer brands, and printers.
Keryas Paper has launched a 40 million USD
project in the United Arab Emirates. Keryas Paper
used the occasion of ProPaper Dubai to launch a
new paper mill project.
Important days of October 2022
2nd Oct: Gandhi Jayanti
5th Oct: Dussehra
8th Oct: Eid E Milad
24th Oct: Diwali
31st Oct: Halloween
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WORLD NEWS
The British pound falls to a new low as tax cuts
cause alarm. The pound tumbled as low as
$1.0373, its lowest level since the currency's
decimalization in 1971, before rising to around
$1.06 in late afternoon trade in London.
Germany takes control of 3 Russian-owned oil
refineries. Rosneft Deutschland GmbH and RN
Refining & Marketing GmbH will be managed by
Germany's Federal Network Agency. The
agency will also have a stake in three
refineries: PCK Schwedt, MiRo, and Bayernoil.
Egypt intends to increase fees for ships
transiting through the Suez Canal by 15% in
2023. The transit fees for bulk and passenger
ships will be raised by 10%.
China's economic troubles continue to mount,
with little signs of abating. The nations' strict
zero-Covid policy appears to be exacerbating
the matter. Eight large cities have gone under
full or partial lockdown in the last two weeks,
which has had a significant impact on the
economy.
NASA's DART programme successfully hits an
asteroid with a spacecraft. The asteroid
system was the ideal target for testing kinetic
impact, which may be required if an asteroid
ever hits Earth.
Tang Yu becomes the world's first humanoid
robot CEO of Chinese Metaverse company
Fujian NetDragon Websoft. The new 'Robot
CEO' will assist the organisation in streamlining
processes, improving work task quality, and
increasing execution speed.
The myths and Facts paper recycling.
The Myth: It is preferable to use recycled paper.
The Fact: To keep the paper cycle going, virgin
fibres from sustainably managed forests are
required.
The paper cycle cannot be maintained without new
fibres from new trees. After many uses, recycled
fibres decay, and the paper industry requires new
fibre from responsibly managed forests to keep the
renewable cycle alive.
There are paper grades that use up to 100%
recycled fibre, including newsprint and packaging
materials. Paper for recycling, on the other hand, is
not suited for use in all paper grades, such as fine
paper, due to high-quality standards. Even though
fine paper is rarely created from recycled fibres, it
is a good and essential raw material source in the
paper recycling process.
Collecting paper for recycling and ensuring that
fibres are available for remanufacture is vital to
sustainability.
• When purchasing paper, whether recycled or
virgin, make sure it is manufactured from wood
sourced from sustainably managed forests.
• Virgin fibre grades are required to keep the cycle
going.
• Recycled fibres decay after a few uses.
Since both are essential to the production of paper,
it is extremely challenging to compare recycled and
virgin fibres directly.
Some grades can benefit more from recycled paper
than others. For example, newsprint is typically
produced entirely of recycled fibre. High-quality
pictorial papers, on the other hand, have a lower
utilisation rate, around 12%4, but when recycled,
inject new fibres into the cycle.
The paper-making process is truly a circular one.
Recycled fibres are employed to the greatest
extent possible, while fresh fibres are regularly
introduced to refill and continue the process.
Keep in tune with the latest industry trends only with
Coniferous. Coniferous is among the leading
distributors of paper and sustainable packaging
across the globe. Source only the best products
with Coniferous.
Quote of the month
" Be yourself; everyone else is
already taken. "
- Oscar Wilde