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Shortage and increase of paper prices

| 22/11/2021 |

Since late spring, paper supply problems have been felt.

Normally, it takes three to five weeks to get a supply of paper. Today, we are seeing a delay of up to ten weeks for the same product.

The epidemic we have been experiencing since the beginning of 2020 has reduced pulp production by 1.5 million tons, or about 20%. This has led to a significant price increase and according to the Canadian NBSK index, the price of pulp has risen by 60% from the summer of 2020 to the summer of 2021, from $810 to $1,310 per ton, according to Pap'Argus, the magazine for the paper and cardboard markets.

Four European factories have scheduled their shutdowns, while others have switched to paperboard production to meet the ever-increasing demand during periods of lockdown when the number of online orders has exploded.

But the decrease in production and the reconversions are not the only causes of these increases. Shipping also has its role to play.

Sanitation restrictions are bringing with them a lot of congestion in the ports, and ships are slow to load. Demand has picked up, and carriers are finding it difficult to keep up with demand, which is leading to price increases in this sector as well. A year ago, a trip to Europe cost 1,600 dollars, whereas today it exceeds 10,000 dollars in July 2021.

So, shortage or adaptation to a changing market?

No shortage in sight, but a need for flexibility in paper selection. Some paper grades will have supply difficulties and we will have to adapt to the availability of paper. This is not an ideal situation, requiring you to simply plan your orders over a longer period of time.

Alternative solutions are always possible, and our customer consultants will be able to guide you through the implementation of your project.