Pulp Markets to Remain Tightly Supplied Until H2 2023
Pulp Markets to Remain Tightly Supplied Until H2 2023
With energy costs and the cost of wood pulp raw materials soaring, pulp prices have risen by around 45% so far this year. Currently, major European paper producers are facing a tight supply of pulp raw materials and are having to import pulp from further afield to keep the raw material available for production.
As a major timber supplier to Europe, Russia's main export timber, birch, is an essential raw material for European tissue production. However, the Russian ban on birch exports to Europe has left European tissue manufacturers facing a supply crisis. According to industry estimates, approximately 800,000 to 1.2 million metric tonnes of pulp are expected to disappear from the market without Russian birch supplies.
Finland is the second largest pulp producer in Europe behind Sweden, and nearly 10% of its wood supply in the past few years has come from Russia. Today, however, Finnish pulp producers have to face production cuts and shutdowns. While in Sweden, some pulp producers have stated that they are putting up prices and charging energy surcharges.
Stora Enso Oyj, the Finnish paper and packaging producer, has said that it has been forced to change its toilet paper production formula to a stronger but much softer long-fiber pulp, which will be more expensive, due to a reduction in wood resources from Russia.
Reduced wood supplies to Europe from Russia have also limited global pulp supplies to some extent. As of September this year, the market had reduced pulp supplies by almost 1.4 million tonnes. Paper producers have also said that companies have been forced to narrow their margins due to the rising cost of pulp and energy.
In the face of future developments in the paper industry, Rafael Barcellos, a Santander research analyst, indicated that the pulp market will remain tight in supply until the second half of 2023. The only time he expects prices to gradually fall is when the mills currently under construction in Chile and Uruguay start shipping next year.Jiayue will continue to export at a stable price, regardless of the rise in the price of wood pulp or paper pulp. With over 10 years of experience in hygiene products, Jiayue offers a wide range of products such as wet wipes/baby diapers/adult diapers/under pad/sanitary napkin, etc. With a stable supply chain, we have everything you want and are your best choice. We have extensive experience in exporting and brand growth, and have helped our customers to become famous local brands. We will provide you with information on product quality and production supply that meets the local market, and give you recommendations on new products or new processes. Jiayue would like to be your eyes and ears in China, and help you open up your local market with stable quality and 10 years marketing experience!
