Paper industry margins decreasing due to capacity additions

The operational results of most paper companies have been worrisome this year. This has been primarily due to the unrelenting increase in cost of raw material and inputs, including coal and pulp wood. The costs could not adequately be recovered from the market. The demand is OK, but the issue is more about input cost squeeze. According to industry sources, mills have hiked printing and writing paper prices by about Rs 2,000 a tonne in December to Rs 54,000.
Market has absorbed increased

printing and writing paper industry, paper market, paper mills margins, paper prices, paper industry capacity