The India importing market for cellulose-based wood pulp came to a close in Dec 2025 on a stronger note with the average landed prices for CFR JNPT increasing by 2.5% mom after a decline in Nov. The price increase was a result of the tightening of global supply and currency-induced cost pressure, despite the resilient downstream demand in India. Sellers passed the cost increase to buyers as they remained active ahead of seasonal demand peaks.
India’s retail and fast-moving consumer goods environment concluded the year with the early signs of a turnaround, providing a positive backdrop for pulp and paper usage amid some challenges on the structural front. Retail inflation rose for the second month running to 1.33 per cent in December, mainly on the back of higher prices of food and personal care items, but continued to remain well below the Reserve Bank of India’s (RBI) 4 per cent target for the 11th straight month. The inflation outlook turned out to be benign, which helped sustain consumer spending on essential goods, thereby also supporting consumption indirectly, but that demand was seen for packaging board, tissue and hygiene papers. The FMCG sector recorded a volume-led recovery in the December quarter after the implementation of the Goods and Services Tax (GST), festive led demand and easing input costs.
As for the supply side, December brought into focus India's ongoing reliance on imported pulp, with the absence of any new domestic capacity addition in sight. Importers said prices fell as mill stocks tightened to around three weeks of consumption, a comfort level for pulp buyers that is lower than the usual one-month supply. This reduction in stock coverage forced producers of packaging and tissue to purchase pulp shipments at increasingly higher prices in order to prevent production interruptions. Traders said the pulp market was becoming more seller oriented in the second half of the month, with less negotiating space on spot prices.
Demand conditions remained supportive throughout December. The packaging board subsector experienced strong pull-through activity, bolstered by continued e-commerce demand and restocking from fast-moving consumer goods manufacturers in anticipation of year-end promotions. At the same time, the academic printing season, normally from December to February, drives up demand for printing and writing paper, and integrated mills increase operating rates. These supported the steady absorption of imported pulp despite the escalating prices.
The tissue paper sub-sector was also further strengthened by demand from catering, medical and sanitary uses. Industry sources attributed the rise in consumption of hardwood pulp grades to the growing demand for paper-based alternatives in India, following the country's promotion of single-use plastic replacement.
On the whole, December 2025 ended on a bullish note for the Indian imported pulp market. Reduced global supply, dwindling domestic inventories, and a depreciated currency combined to push up pulp prices, while robust downstream demand from packaging, tissue, and even academic printing provided sufficient confidence to hold higher costs. Traders head into early 2026 with a keen eye for signs of changes in global mill operating rates (output/supply), currency movements, and the sustainability of demand across the major segments.
