According to the financial Associated Press, pulp inventories have fallen sharply worldwide. Suzano SA, the world’s largest pulp producer headquartered in Brazil, believes that there is a possibility of supply shortage, or lead to a rise in the prices of necessities such as paper towels and toilet paper.

Walter schalka, CEO of Suzano, said in an interview that Russia is an important timber source in Europe. Due to the escalation of the conflict between Russia and Ukraine, the timber trade between Russia and Europe has been completely blocked.

The production capacity of pulp producers in Europe, especially in Scandinavia (Denmark, Norway, Sweden), will be curbed. Schalka said, “pulp stocks have been gradually decreasing and moving towards supply disruptions. (interruptions) are likely to occur.”

Even before the outbreak of the conflict between Russia and Ukraine, the raw pulp market was already relatively tight. The problem of insufficient container capacity is particularly serious in Brazil, where a large amount of sugar, soybeans and coffee are waiting for export, leading to the continuous rise of freight rates.

After the outbreak of the conflict between Russia and Ukraine, food and energy prices soared, which not only increased the transportation cost of Brazilian pulp, but also ran into the transportation capacity of pulp. The prices of wrapping paper, diapers and toilet paper will rise, causing a new round of blow to consumers.

Demand for pulp in Latin America is exploding, but producers in the region have no room to accept new orders and factories are operating at full capacity. Schalka said the demand for Suzano had already exceeded the company’s affordability.

Schalka added that tissue is a necessity of life, and even if the price rises, it will not affect the market demand for it.