High prices for toilet paper threaten due to shortage of wood pulp | Financial

The war in Ukraine is an important cause, according to CEO Walter Schalka of Suzano. Europe used to buy a lot of Russian timber, but since Russia invaded Ukraine, that trade has been almost completely blocked. Certain certificates of Russian timber have also been revoked.

European producers of wood pulp now make less of the raw material for paper and that will not change for the foreseeable future. Russian pulp makers are also struggling to continue producing because they cannot get all the necessary materials. As a result, global pulp stocks are declining. “That could end up at a tipping point where shortages arise,” says Schalka.

These factors and a strong demand for paper and cardboard due to the increased online shopping since the corona pandemic, among other things, are driving prices up. The price for Chinese wood pulp has already risen 40 percent this year.

Since paper is an essential commodity, especially tissues and toilet paper, demand is not expected to decline as price increases. It is a new setback for consumers. Food and energy, among other things, became considerably more expensive as a result of the war in Ukraine. In addition, problems in the supply chain, due to, among other things, Chinese lockdowns, are driving up prices.

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