The Prime Minister’s Economic Advisory Council has, in a recent statement, indicated that a turn-around in economy from a decade’s low growth is expected during fiscal 2013-14. As efforts to reign in inflation begin to deliver results the sentiment in the private sector has improved.

The very high levels of domestic investment recorded at the moment are generating optimism that if projects are implemented quickly then a higher rate of GDP growth can be achieved. India’s export performance was battered by declining overseas demand for most of last year but grew by 6.97% in March, the third successive monthly growth.

Packaging board plant Tamil Nadu
The chief minister of Tamil Nadu Ms.Jayalalithaa, has announced the establishment of a Rs.12 billion project for the annual manufacture of 200,000 tonnes of multi-layer double coated packaging board. This new plant will be built in Tiruchi by Tamil Nadu Newsprint and Papers Ltd and is expected to provide additional employment for 2,000 people. At present around 40% of the demand for coated paper is met through imports

The new plant will produce high end white liner boards for folding boxes, the fastest growing segment in the paper industry. The company is producing 400,000 tonnes of printing and writing papers and has recently started a 600 tonnes per day cement plant using paper mill waste and fly ash as raw material.

Scouting raw materials in Myanmar and Vietnam
To meet the rising demand for quality paper across India JK Paper is looking to develop new facilities in Myanmar and Vietnam to source pulp so as to increase output. The company recognizes that in the short to medium term at least sourcing domestic wood raw materials will remain a challenge. Because of this the company says it is imperative to find new sources of quality raw materials. The focus on Myanmar and Vietnam is due to their proximity and also their policies for attracting inward investment.

The demand in India for paper continues to be strong. It is estimated at around 11.5 million tonnes is currently required to meet domestic demand and this could grow to 20 million tonnes by 2020. The company has added close to 290,000 tonnes of production capacity over the last few years and its total production capacity stands at 455,000 tonnes at the moment.

Exports of Plywood and Allied Products

Source: MoC Export Import Databank

Sales of teak and other hardwoods at Western forest Depots
During the last two to three auctions in south Gujarat depots the quality as well as quantity of logs offered for sale were very good such that prices improved on the back of strong buyer interest. During the most recent auction a correction in prices was observed as buyers limited purchases to their immediate requirements only.

Average prices recorded at the most recent auction are as follows:

Prices for Haldu (Adina cordifolia) and Laurel (Terminalia tomentosa) logs

Supplies and shipments of imported plantation teak have been steady and prices remain stable.

Imported Plantation Teak Prices (C&F)

Variations exist based on lengths and average girths of logs in a parcel. Prices also vary with measurement allowances given for bark and sap in different countries of origin.

Ex-sawmill prices for imported hardwoods
Prices for air dried sawnwood per cubic foot, ex-sawmill are shown below

Prices for Myanmar Teak sawn in India

The price range is the result of variations in length and cross section.

Imported KD 12% sawn wood
Prices are currently firm due to weak rupee.

Imported KD 12% sawn wood

Plywood market prices
Prices remain unchanged as follows:

WBP Marine grade from domestic mills

Domestic Ex-warehouse Prices for Locally Manufactured Plywood