The Russian invasion of Ukraine has more collateral damage. As oil and gold prices rise, newsprint prices will also rise and are likely to rise if the conflict does not end soon and oil prices remain high.
According to experts, the volatility of foreign exchange markets can also further influence newsprint prices. The uncertainty of the conflict so far has pushed prices up marginally.
Newspapers that ordered stacks of stock and hedged against dollars didn’t have much to worry about.
The Russian offensive came at a time of already high inflation and a global shortage of raw materials. Many experts also believe that for India, which has no strategic interest in this conflict, the consequences will be primarily economic. Rising commodity prices will affect the current account deficit and domestic inflation. The prospects for exporting services to Europe will also be negatively affected. They also add that sanctions against Russia could affect regular trade between India and Russia.
While there is no immediate fear that trade routes will be blocked, rising oil prices are sure to have a short to medium-term impact on the Indian economy.
Some newsprint (NP) sellers that Exchange4media spoke to believe that the majority of NP shipments have been or are being shipped overseas. War can affect orders that have not yet been shipped. NP prices are likely to continue rising in the coming months due to transport and shortages of Western and European paper.
However, any disruption will depend on the length of the war, experts say.