Spiralling cost of import pulp pushes up paper price

The price of paper products on the local market is expected to rise by 10 percent, because of the increasing price of imported pulp.

Cao Tien Vi, member of the Vietnam Pulp and Paper Association (VPPA), told the Daily that as the industry was still importing almost all the pulp needed for paper production, the increasing price of the imported pulp would mean a 10 percent rise in paper costs by the end of the year.

He said the imported pulp was still very high at some $700 per tonne, nearly 50 percent more than the average price in recent years.

“The supplies for pulp materials in the world markets are down because of some recent forest fires, so I think the price of imported pulp will keep increasing,” Vi said.

At the moment, Vietnam’s paper industry is importing pulp from Brazil, Russia, Canada and Indonesia.

Vi said the consumption of domestically produced paper had declined with more competition with imported products.

“This has been causing difficulties for local paper producers,” he said.

At the moment, the country is trying to reduce paper imports and increase exports of its own products but without much success because of quality and price problems.

Vietnam produces 1.5 million tonnes each year, compared to demand of over two million tonnes.

The imports of paper products into Vietnam could fall because of the 2 percent devaluation of the dong against the US dollar, Vi said.

The country depends totally on imports for some special papers such as packing paper, decorative paper and cardboard for boxes.

According to VPPA, 35 percent of local paper enterprises are still small producers with outdated technology that wastes energy and water and causes pollution.

The industry would have difficulty updating technology without more support from government, Vi added. – Saigon Times

Tags: Vietnam paper industry, Vietnam paper prices