A Squeeze in Pulp Supply Is Raising Risk of Pricier Toilet Paper
- Russia’s invasion of Ukraine is disrupting European supplies
- Suzano CEO discusses market constraints in exclusive interview
Paper is fed onto a spool at a pulp and paper mill in Segezha, Russia.
Source: Bloomberg
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Pulp inventories have been falling so much around the world that Suzano SA, the global top producer, sees a risk of a supply shortage, possibly leading to higher prices of such essential items as tissue and toilet paper.
Russia is an important source of wood for Europe, and this trade has been completely blocked since the invasion of Ukraine, according to Suzano Chief Executive Officer Walter Schalka. Russian wood also lost global certifications. That means pulp producers in Europe, especially in Scandinavia, will have their production capacity curbed.