Skaha, CEO of Suzano SA, the world’s largest pulp producer, @6th May,said that pulp stocks have been gradually decreasing, and supply disruptions are likely to occur in the future, or lead to higher prices for essentials such as paper towels and sanitary napkins and diapers.
Since the beginning of this year, there have been many voices about the price increase of paper products. How is the market performance? In April, a number of domestic paper products companies said that due to factors such as raw material prices and transportation costs, some paper types rose by 300 to 500 yuan per ton. The prices of toilet paper and sanitary napkins, which are commonly used in people’s lives, have also risen, ranging from 10% to 15%.
Although paper products companies have set off a “price hike”, from the financial reports disclosed by related companies, fluctuations in raw material prices have put pressure on the performance of related companies.
The world’s largest pulp producer warns: stocks are NOT enough
Suzano SA, headquartered in Brazil, is the world’s largest pulp producer. Its CEO Skaha said in an interview with the media on the 6th that Russia is an important source of wood in Europe. Due to the escalation of the conflict between Russia and Ukraine, wood between Russia and Europe Trade has been completely blocked.
The production capacity of European pulp producers, especially in Scandinavia (Denmark, Norway, Sweden), will be curbed. “Pulp stocks have been gradually dwindling and heading towards supply disruptions. (Disruptions) are likely to happen,” Skaha said.
Even before the outbreak of the Russian-Ukrainian conflict, the raw pulp market was already tight. The problem of insufficient container capacity is particularly acute in Brazil, where large quantities of sugar, soybeans and coffee are waiting to be exported, leading to continued increases in freight rates.
After the outbreak of the Russian-Ukrainian conflict, the price of food and energy soared, which not only increased the transportation cost of Brazilian pulp, but also squeezed the transportation capacity of pulp by food. The price of sanitary napkins, diapers and toilet paper will rise, causing a new blow to consumers.
Demand for pulp in Latin America is exploding, but producers in the region have run out of room to take new orders and mills are already operating at full capacity. Skaha said the demand for pulp has long outstripped the company’s capacity.
Skaha added that hygiene products are a necessities of life, and even if the price rises, it will not affect the market demand for it.
Post time: May-11-2022
