Once upon a time, toilet paper became the focus product from 2020 because of covid-19.The toilet paper and the pulp price went through top to lowest then to highest now.With the Pulp inventories have been falling so much around the world in 2021, the global top producer, sees a risk of a supply shortage, possibly leading to higher prices of such essential items as tissue and toilet paper.
The tight of pulp
Russia is an important source of wood of the world, and this trade has been completely blocked since the war with Ukraine. Russian wood also lost global certifications. That means pulp producers in Europe, especially in Scandinavia, will have their production capacity curbed.
“Pulp inventories have been gradually declining until they can reach a disruption point, a lack of pulp,” “This may happen.”
The tight market of pulp, used to make packages, diapers and toilet paper, is another blow to consumers, who have been struggling from rising prices for goods ranging from food to fuel.
Russia is a big pulp producing country.Russian pulp producers are struggling to keep operating amid a lack of some raw materials, and a major company has been forced to temporarily halt activities. But Russo-Ukraine war has disrupted most of Russia's foreign trade this year.So 1/3 of the pulp is disrupted and the pulp shortage is being a sharp problem.
Demand for Latin America’s pulp is booming, but producers in the region have no room to take new orders as they are booked and working at full capacity. Demand has been higher than the company is able to produce.As paper, especially tissue, is an essential item, inflation impacts on demand are expected to be soft.
Pulp supply in the first quarter was also affected by prolonged problems in sea logistics and disruptions on inland transportation with workers strikes and delays on new projects. Those factors, coupled with strong demand, prompted a rally of around 40% on China’s pulp prices this year, according to a May 3 report from Brazilian bank BTG Pactual.