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West Coast Paper may raise prices in July

West Coast Paper may raise prices in July
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First Published: Tue, Jun 15 2010. 04 42 PM IST
Updated: Tue, Jun 15 2010. 04 42 PM IST
Mumbai: West Coast Paper Mills is looking to raise prices in July on firm demand and to offset rising costs, following similar moves by global peers last month.
Brazil’s Fibria — the world’s largest supplier of pulp to paper makers and Portugal Altri which exports almost all of its production, raised prices in June.
“Demand is firm but cost push is also there. Pulp prices, fuel, diesel are all rising,” V. Subbiah, vice-president of marketing, at West Coast Paper told Reuters over the telephone.
The global paper industry had been mired in a slump caused by weak demand and overcapacity, exacerbated by last year’s recession which hammered advertising spending, but demand is now turning around in some segements.
Demand across segments will continue to remain strong in India in FY10, company officials said.
However, JK Paper Mills, which raised prices of board by Rs1,000 per tonne in June, does not plan any price hikes, V. Kumaraswamy, vice-president of finance, said.
“It will be slightly difficult,” he said when asked if JK Paper was contemplating price increases in July. “Normally it is twice a year but this year we have been lucky -- we’ve already taken two price increases in a quarter.”
“The hike in prices is primarily because of demand. Costs, for us, are under control so far,” Kumaraswamy said.
Shares in West Coast Paper ended up 2.75% while JK Paper closed up 1.71% in a firm Mumbai market.
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First Published: Tue, Jun 15 2010. 04 42 PM IST