Criticalities in the paper sector in the context of the pandemic

According to ASSOCARTA, the pulp and paper industry is apparently one of the most impacted sectors resulting from the Covid-19 pandemic. ASSOCARTA laments the price increases of paper destined for recycling, mainly for the production of packing papers, saying that they have seen these prices increas by 50% to 70% from March till the end of 2020, and as much as 150% and 170% since the first months of 2020.

From 90 euro in December to 140 euro in March for recycled paper and from 110 euro in December to 170 in March, for packing cardboard. A race destined to continue. It is believed that the cause is exports (especially to non-European countries) which takes materials from the paper recycling industry of the Italian supply chain. Moreover, on the front of virgin raw materials there have been price increases caused by the demand of the Asian titans.

Along parallel lines, we must also add the costs of cellulose. Short-fibre cellulose, imported almost entirely from South America, is used for the realisation of paper for hygiene and sanitary purposes. Long-fibre cellulose, imported from northern Europe and North America, is predominantly used to produce graphic paper. The costs of both have increased by approximately 25% since December 2020 due to an international market in constant tension (there are differences in price between Europe and other areas) in addition to the problems of availability and the costs of the global logistics system. 

Last but not least, ASSOCARTA bemoans the cost of gas, the principal energy source used in the pulp and paper industry (+54% annually).

Source: Interview with Assocarta by agenzianewsnews.com