European paper industry supply shortage worries intensify, domestic pulp prices may remain high

Recently, stimulated by factors such as pulp price hike, energy crisis combined with high temperature and drought, the production of the European paper industry has continued to be under pressure, and the demand for paper imports is expected to increase.
At the same time, some reporters learned from the industry that the continuation of the European supply chain crisis may further support the international pulp price, and the time for the domestic pulp price to fall may be delayed. Some people from Zhejiang paper companies worried: "This round of pulp continues to be at a high level that has never been seen in history. Various factors have been hyping it up, and the paper mills are really uncomfortable."
The old problems such as pulp price increase and energy crisis have not yet been solved, and the European paper industry has encountered new challenges such as high temperature and drought, port strikes, etc., which have made the already tight supply chain "worse". More European consultancies said that the aforementioned heavy pressures combined with the impact of inflation, European pulp mills may announce a shutdown in the next few months.
The expected shutdown of pulp mills has not yet come to fruition, and downstream paper companies have already been hit first. In Germany, tissue company Hakle declared bankruptcy in September because it was unable to transfer energy and raw material costs. Companies with stronger bargaining power have started a new round of price increases. Swedish hygiene product maker Essity recently announced a new round of price increases for all of its product lines, citing the same cost pressure. According to the company, electricity prices and oil prices have risen sharply since August, and the company's raw material prices have also risen significantly in the third quarter.
Continued turmoil in the European paper industry has also triggered downstream customers to enter the layout. The German supermarket chain Lidl and Kauflan recently stated that the main purpose of its decision to purchase a pulp mill is to ensure its own paper supply. It is reported that the pulp mill in this transaction has an annual production capacity of 500,000 tons, which is relatively large. Some commentators believe that the supermarket chain has strong financial strength. This acquisition is mainly due to the tight supply chain of the paper industry for too long. It is worth paying attention to whether other downstream customers will follow suit and enter the paper industry.
In addition, the shortage of paper supply in Europe may constitute a certain support for international pulp prices, which will continue to put pressure on domestic paper industry costs. A futures analyst told reporters that considering that the price of imported pulp in Europe is higher than that of my country, the recovery of the European paper supply chain is expected to be earlier than that of my country.