The Indian market for Unbleached Kraft Board (UKB) is witnessing a softer trend as weak procurement activity and rising supply pressures continue to weigh on market sentiment.
While demand from industrial packaging, e-commerce, and corrugated box manufacturers remains stable, buyers are increasingly adopting a cautious purchasing approach amid ample material availability and competitive pricing.
Adding to the pressure, declining global kraft pulp and waste paper prices have reduced production costs across the paper value chain.
At the same time, low-priced imports from Chinese and Indonesian mills have intensified competition in the domestic market, limiting the pricing power of local manufacturers.
As a result, market participants are navigating a challenging environment characterized by oversupply and subdued buying interest.
What Supported UKB Prices Earlier?
Before the recent correction, India’s Unbleached Kraft Board market remained relatively stable due to firm raw material costs and steady demand from packaging applications.
Strong consumption from industrial packaging, agriculture, consumer goods, and transport packaging sectors supported market fundamentals and helped maintain price levels.
At the same time, elevated waste paper and kraft pulp costs increased manufacturing expenses for paper mills, limiting the scope for aggressive discounting. Domestic producers largely maintained pricing discipline as demand remained sufficient to absorb available supply.
However, market conditions gradually shifted as global raw material prices started easing and additional production capacity entered regional markets.
Increasing import availability and weakening export opportunities began exerting downward pressure on domestic prices, setting the stage for the correction witnessed in late May.
UKB Price Correction Reflects Changing Market Fundamentals
What is happening in India’s Unbleached Kraft Board market right now? After remaining stable through mid-May, prices declined by 3.23% during the week ending 22 May 2026 before stabilizing in subsequent weeks.
The correction was primarily driven by lower global kraft pulp and waste paper prices, which reduced cost pressures for manufacturers. Simultaneously, the ongoing West Asia crisis disrupted key export channels, limiting overseas sales opportunities for Indian suppliers.
Meanwhile, competitively priced imports from China and Indonesia increased supply availability in the domestic market, intensifying competition among suppliers.
Combined with domestic overcapacity and weak procurement activity from buyers, these factors contributed to the downward movement in UKB prices.
As a result, Unbleached Kraft Board 200–225 Plybond, 200–375 GSM Ex-Vapi prices declined by approximately 3.23% during the week ending 22 May 2026 before stabilizing in subsequent weeks.
Source: Price Watch™ Unbleached Kraft Board
Unbleached Kraft Board Market Outlook
Looking ahead, the Indian UKB market is expected to remain stable-to-soft in the near term. Comfortable inventories, lower raw material costs, and continued import competition are likely to keep upward price momentum limited.
Unless export demand improves significantly or domestic production is adjusted to better align with consumption levels, prices may continue to move within a narrow range.
For now, buyers are expected to benefit from favourable supply conditions, while manufacturers and traders may continue facing margin pressure in an increasingly competitive market.
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