Century Pulp and Paper expects WPP and copier paper demand to improve post-elections, with government tenders opening. Oversupply in the market is likely to continue

Century Pulp and Paper expects WPP and copier paper demand to improve post-elections, with government tenders opening. Oversupply in the market is likely to continue

The Pulp and Paper Times | 11th May 2024

Nestled at the foothills of the Himalayas in Lalkua, Uttarakhand, Century Pulp and Paper (CPP) stands out as a prominent player in the industry. With a strong focus on quality, CPP has established itself as a renowned producer of premium writing and printing paper, board, Rayon Grade Pulp, and tissue products. CPP reports a growth in its production volumes for the Q4 FY24.

In Q4 FY24, CPP’s overall production volumes increased by 6% YoY, however, were 4% lower than previous quarter. Sales volumes increased by 13%YoY. However, consistently reducing NSR impacted Sales Turnover and EBITDA. Board and Tissue sales were better than Q4 FY23 as compared to Paper and CGP sales.

In its presentation to SEBI, CPP admitted that Supply chain disruptions in the Red Sea and Suez canal have contributed to increase in prices of key raw materials. Increasing price of Imported Pulp and challenges in wood availability have also impacted cost of production.

On forthcoming market outlook, CPP stated that Writing & Printing and Copier paper demand is expected to improve post elections with government tenders opening in Q1 FY25. Seasonal factors are expected to moderately revive demand with an increase in exports offering improved realizations and greater price stability.

Tissue demand to remain stable in FY25. Domestic realizations continue to be higher than in export markets. Hence, CPP focus is to prioritize growth in the domestic market. Export demand was good in Tissue segment with upward price corrections. Domestic realizations were significantly higher than exports in tissue segments.

“Board demand is likely to improve in Q1 FY25 with Pharma segment gearing up for summer medicines with added price increase announced by International Paper Mills” CPP stated for Board’s Outlook

CPP says, “Export demand from Europe, USA and UK markets is consistent and is expected to improve in FY25. However, Oversupply in market is likely to continue in FY25 as the market growth is lower than the capacity being added by domestic as well as international mills,”

Various cost reduction initiatives envisaged in Pulp and Recovery, Power Block and machine replacements in PM3 which would help improve machine productivity and reduce overall costs for CPP. As a part of sustainability initiatives, 80 nurseries have been developed in 11 districts to provide seedlings and clones to farmers and a total of 52,97,217 plantations completed in FY24.
 

Web Title: Century Pulp and Paper expects WPP and copier paper demand to improve post-elections, with government tenders opening. Oversupply in the market is likely to continue