JK Paper, West Coast Paper Mills: Paper stocks crisp in trade on Friday

Indian Paper Manufacturer Association has requested for imposition of anti-dumping duty on the imports from China and Chile

Paper stocks advanced up to 7 per cent in intraday trade on Friday, but pared some gains in the afternoon trade. At around 1:35 PM, JK Paper shares were up 5.67 per cent on the BSE, West Coast Paper Mills shares were up 1.36 per cent, Emami Paper Mills 0.66 per cent, Tamil Nadu Newsprint and Papers 0.8 per cent, Andhra Paper 0.34 per cent, and Orient Papers & Industries 0.13 per cent.

In comparison, the BSE Sensex traded 0.65 per cent lower at 81,960.29 around the same time.

On September 30, as per a notification by the Ministry of Commerce and Industry, the Indian Paper Manufacturer Association filed an application to initiate an anti-dumping investigation concerning imports of Virgin Multi-layer Paperboard originating in or exported from Chile and People's Republic of China.

The Indian Paper Manufacturer Association has requested for imposition of anti-dumping duty on the imports of the product under consideration from China and Chile.

They have alleged that China PR and Chile are causing material injury to the domestic industry by dumping imports of multi-layer boards made of white/virgin wood pulp, also known as Virgin Multi-Layer Paperboard.

"There has been a significant increase in imports from subject countries in absolute and relative terms, at prices below the cost of sales of the domestic industry. The applicant has claimed that the imports have suppressed and depressed the prices of the domestic industry," the notification read.

Virgin Multilayer Paperboard is used as a material in the packaging industry due to its strength and purity. They are used for packing food, cosmetics, and pharma products.

The ministry is currently in the process of investigating the existence, degree, and effect of the dumping and may soon provide a solution.

As per the notification, Century Textiles and Industries, Emami Papers Mills, ITC, JK Paper, and Tamil Nadu Newsprint and Papers have provided information for the present investigation.

West Coast Paper Mills has also filed a letter supporting the application filed by the applicant.