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The paper market boom

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The paper market boom

Homan Akhavein
At the time when sanctions had put a comprehensive pressure on national economy and industry, paper market had been moving into the opposite direction of the movement because it seemed that importation of paper could be used as one of the effective main solutions to bypass the sanctions for many exporters and financial firms.
Saturday, February 11, 2017 11:49:00 AM

 At the time when sanctions had put a comprehensive pressure on national economy and industry, paper market had been moving into the opposite direction of the movement because it seemed that importation of paper could be used as one of the effective main solutions to bypass the sanctions for many exporters and financial firms. In this regard, some business groups in the country who faced with currency transfer restrictions used to find their liquidity by paper importation and sale on the domestic market.

The high volume of imports, which was done mostly through India, Indonesia, China, Korea and South-East Asia was putting a comprehensive pressure on the domestic industrial paper manufacturer and was out of business logic and capital tolerance by removing the Europeans and paper manufacturer in the Western Hemisphere of our market. These days, for their production they have to buy raw materials (even for domestic ones) with free exchange and should have the power of competing with the saturated products in market.

Handling the high volume of problems and false pressures which has not effectively diminished even by starting the Joint Comprehensive Plan of Action has caused into the erosion of the multilateral system or at least suspension of growth activities and industrial development in the pulp and paper industry in Iran. This equation is still the everyday story of these years of the industry.

When News sites and channels were being busy with political and electoral analysis about cabinet changes, paper market participants were following up the Ministry of Islamic Guidance news with more concerns because Ali Jannati (the former minister of Islamic Guidance) had been able to neutralize the efforts of major manufacturers in the industry and the Ministry of Industry following-up for increasing the import duties on paper under the pretext of concern about the increasing cost of books and supplies.

Similarly, changing the Minister of Education which is the largest importer of paper for printing school books could seriously affect the somewhat stabilized price of this strategic product.

With the sudden increase in the price of paper from the beginning of this fall, a new round of developments in this market has begun. The first shock was changing the active Director of Mazandaran paper – Abolfazl Roghani – which surprised the market and paper industry participants. The amazement soon turned into a wonder when the rumors of his entering to Pars Paper Industries Group Board of Directors (the newly privatized company that has found way to the exchange market) were confirmed by Mohammad Javad Moghadam, Pars paper products owner.

In the same direction parallel to the developments and changes and even before it, European players with the experience in the Paper Market are looking for expanding their influence in Iran under their technical knowledge and advanced technology.

The credible Austrian brand, Mondi, with the help of experts and Roxcel representation organizing - one of the leading suppliers of paper in the world that is known by its Iranian owner Ahmed Porkar- in a conference held in Parsian Azadi Hotel with the presence of Iran's most important sheets and cardboard industry players, showed his enthusiasm to participate in sheets and cardboard industry of Iran. Austria also organized another meeting at your business sector to remind the activists and the audiences of printing and packaging market another giant in the industry's suppliers of raw materials and paper knowledge and expertise, Mayr Melnhof.

At the same time, this process was accompanied with news and signs of interest and economy efforts of Finland to involve in Iran's markets.

The president entrance of the world’s largest and the most prestigious countries in paper and paperboard production to the country, and his accompany with Finnish executives and industrialists active in the cellulose industry (wood and paper) especially renowned company Enzo Stvra can make comprehensive changes to the class.

However, it must be admitted that this exchanges and interactions for our industry and pulp and paper consumers have a positive impact and can underlay for quality competition and growth in the country's pulp and paper industry.




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