The chaos in maritime transport is another factor that encourages famineAn unexpected shortage of cellulose (the main raw material for papermaking) has been pushing prices to record levels for a few months with no prospect of relief for the world's papermakers, according to major producer Suzano SA.According to the Bloomberg agency, unscheduled production cuts at key suppliers had withdrawn 1.65 million tons of pulp from the market as of May, more than double the losses recorded each year for such reasons.Supply disruptions are the main reason for a 46% rise in Chinese pulp prices this year, although prices in all markets are at an all-time high and the rally may not be over, he said. Leonardo Grimaldi, CEO of Suzano SA in an interview.That means, he warned, that essential items like toilet paper, diapers and food packaging are more expensive, adding to global inflation problems.Finnish pulp mills that depend on Russian wood are experiencing supply shortages thanks to sanctions against Russia over the war.Birch trees from Russia are raw material for 1.2 million tonnes of hardwood pulp in Finland, Grimaldi said, citing figures from global consultants, he added.Likewise, the shipping chaos that is delaying shipments around the world is also adding to the supply disruptions, with between 1 million and 2 million tons of pulp stalled, Grimaldi said.Global logistics have worsened amid tighter Covid-19 controls and a lack of workers, increasing travel time.Shipping companies do not expect the situation to improve for at least six months, he said.Russian wood also lost global certifications.This means that pulp producers in Europe, especially in Scandinavia, will see their production capacity reduced.Russia is an important source of wood for Europe, and this trade has been completely blocked since the Russian invasion of Ukraine.Russian pulp producers are struggling to continue operating amid a lack of some raw materials, while a major one has been forced to temporarily halt its activities.As the invasion of Ukraine continues, more supply disruptions are expected in the Black Sea.Pulp demand from Latin America is booming, however, the region's producers do not have room to receive new orders as their production is saturated and working at full capacity.For Suzano, the demand has been higher than the company can meet, Walter Schalka, general director of that company, told the Spanish newspaper La Razón.In Europe, paper prices have registered a growth rate of 45% on average in the last six months, even reaching 80% for the newsprint used to produce newspapers, according to data from the Association of the European graphic industry Intergraf.Vital products such as food, medicine, but also newspapers and school books, are facing interruptions.For example, in Spain, the Ministry of Health already has a list of 500 medicines with which there are supply problems due to the lack of metal blisters and cardboard boxes, and in Autonomous Communities such as La Rioja, some newspapers are stopping printing .“The situation is no different from what other industries are going through.During the pandemic many of the supply chains and many factories have been operating far below normal.And when the economic recovery has arrived, the demand has increased much more.In the publishing world and in the graphic arts they have resumed their activity with energy and time is needed to readjust the flows”, said Carlos Reinoso, director of the Spanish Association of Pulp, Paper and Cardboard Manufacturers (Aspapel).Added to the adjustment between supply and demand has been the war, which has caused, among many other things, sharp increases in gas prices.The paper production industry depends on this fuel.The shortage reaches essential products such as toilet paperA couple of weeks ago, the Bloomberg news platform published information echoing the alert launched by Suzano SA, a global supplier of cellulose regarding toilet paper.“Russia is an important source of wood for Europe, and this trade has been completely blocked since the invasion of Ukraine.This means that pulp producers in Europe will see their production capacity reduced.Those factors, along with strong demand, have caused Chinese pulp prices to rise by around 40% so far this year.Pulp inventories have been gradually declining to such an extent that they could reach a point of interruption or a pulp shortage."The price of toilet paper has also increased and in this case it is a type of product whose demand increases rapidly as soon as there is an international alert, as we have seen with the latest international events," says Cristian Castillo, professor of Economics at the Open University of Catalonia (UOC).Wholesale suppliers in conflictsThe paper obtained from cellulose and cardboard for packaging and bookbinding comes from countries located in boreal forest areas such as those of the Scandinavian Peninsula, Canada, Russia, etc., along with large Asian suppliers such as China or Thailand.In the European case, furthermore, workers' strikes have paralyzed the activity of UPM, a paper company in Finland and the main supplier of graphic paper in Europe.Some protests of almost four months that have finished giving the lace to the sector.Another aspect has to do with a rapid growth in demand from other sectors such as parcels.Electronic commerce has experienced an extraordinary increase since the start of the pandemic and that has been decisive in this shortage of cardboard for all uses.In the case of the publishing industry, the problem lies in the increase in prices and the difficulty of supplying paper and cardboard.The large publishing groups stock up on raw materials from one year to the next, but the scarcity derived from the greater demand and the extra cost of imports and the rise in energy prices have not been avoided.If you want more information you can subscribe to our official channels:You can also visit us on Facebook |Twitter |InstagramJhair died for silver;his father was an accompliceCochabamba: Report of a survivor of the attack in IvirgarzamaThey find three bodies in an abandoned vehicle in IvirgarzamaA family is stuck in Padilla, but is out of dangerA lawyer is murdered in his own home;the police found the body ten days after the crimeThe Alasita Fair begins on July 15 at La RotondaTriple crime: Police accomplices of the Colombian escape fallA new beginning for the “Matador”Chuquisaca registers its second death from the fifth wave of covid-19MAS reacts against deputy Cuéllar;opponents ask for sanctionYamparáez: Four teachers have an accident leaving their school in CaramaThey kidnap and murder a six-year-old boy in LlallaguaJhair died for silver;his father was an accompliceList of teachers injured in an accident in YamparáezCochabamba: Report of a survivor of the attack in IvirgarzamaWitness reveals altercation between police and "narcos"Colombian accused of triple murder says he was in the hands of police, but they released him after taking moneyNodal's demands: Armored cars, private plane and $300,000 to sing in La PazFather sexually assaults his daughters and is imprisonedMandatory use of the chinstrap and continuous work hours, among the provisions before the fifth wave in Bolivia