Global pulp stocks are in a hurry! Sanitary napkins, baby diapers, and paper towels price are all going up!
The world's largest pulp producer warns: pulp stocks are running low.
On May 6, 2022, Skaha, CEO of Suzano SA, the world's largest pulp producer, said that pulp stocks had 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.
Brazil-based Suzano SA 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, causing freight rates to continue to rise.
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 necessity of life, and even if the price rises, it will not affect the market demand for it.
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