Imported paper prices fell between 10% and 15% beginning this February, due to an increase in global market supply.
Amr Khader, head of the paper division at the Cairo Chamber of Commerce said that the drop in imported paper prices will see an increase in the volume of paper supply in the market in the coming months.
Khader added that international paper manufacturers had cut the price by around $200 for a tonne of paper at the beginning of this month, amounting to $1,100 per tonne from $1,300 per tonne.
The Egyptian market’s consumption of writing and printing paper is around 4,50,000 tonnes per annum. Of this around 3,00,000 tonnes are imported, while the remaining quantity of 1,50,000 tonnes of paper is produced locally by leading paper manufacturers such as Quena Paper Industry Company and Misr Edfu Paper Company, along with several other smaller manufacturers. 60% of Egypt’s paper imports come primarily from Austria, China, Germany, Indonesia, Italy, and Portugal.
The dip in imported paper price and its increased supply in the market over a period of 2 to 3 months are likely to affect the price of domestic paper. The decrease in imported paper prices is expected to impact the domestic market during the month of April, with price per tonne ranging between 42,000 and 44,000 pounds, compared to the current market price of 55,000 pounds.
Khader also pointed out that paper shipments that were stockpiled in ports for months were fully released at the beginning of 2023, and have returned to normal levels witnessed before the crisis that resulted from the central bank’s decision requiring importers to use letters of credit rather than documentary collection when buying from abroad since March 2022.
