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.
Last year too
A year ago, the same company also warned of significant price increases, at the time due to a worldwide shortage of containers. That warning then led to fears of a new hamster rage on toilet paper, such as at the start of the corona crisis a year earlier.
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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.
Increase in online shopping
Added to this is the huge increase in online shopping, which requires a lot of cardboard boxes. All in all, the price for Chinese wood pulp has already risen 40 percent this year.
Since toilet paper and disposable diapers are an essential commodity, demand is not expected to fall as price rises
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