Overview of Present Market Climate for P&P Indicates Softer Optimism on Horizon
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In the current climate, requests for pulp are constantly rising. 90% of the market is made up of Southern bleached softwood kraft (Sbsk) fluff. The material holds a 9% share of the global market pulp end use market, while printing and writing have a 32% share; tissue, specialty and paperboard account for 29, 19 and 10% respectively.
The global estimated output, nearly three years ago, was as high as 5 million metric tons and all of its industrial applications were on the rise. Forecasts had predicted +4% growth rate for baby diapers; a +4% growth rate both for feminine care and adult incontinence products; finally a 3%+ for airlaid and specialty items, until 2019. These products are currently registering as high as CAGR 5% while even previously declining graphic paper grades are up ~3.5%. The continuing growth is about on par with a slightly above average expectation of the strength of the market, which is slightly stronger than the "pure median" path based on factoring total projection based on accounting for a downturn dampening the effect of a maintained upturn that doesn't become stronger. Bloomberg News (New York, N.Y., USA) reported this effect happening during the final quarter for paper as well as other packaging and container materials produced without the use of mill processed wood.
Key Players in Paper Pulp Market: Stora Enso (FI) Fibria (BR) RGE (SG) Sappi (ZA) UMP (FI) ARAUCO (CL) CMPC (CL) APP (SG) Metsa Fibre (FI) Suzano (BR) IP (US) Resolute (CA) Ilim (RU) Södra Cell (SE) Domtar (US) Nippon Paper (JP) Mercer (CA) Eldorado (BR) Cenibra (BR) Oji Paper (JP) Ence (ES) Canfor (CA) West Fraser (CA) SCA (SE) Chenming (CN) Sun Paper (CN) Yueyang (CN) Yongfeng (CN) Huatai (CN)
Especially when it comes to absorbent hygiene products (AHP) a market slowdown is still considered rather unlikely. Experts considered in fact that within two or three years the related business will rocket, driven by the disposable pro capita income growth in such regions as Middle East and Africa, Asia-Pacific and, most of all, Eastern Europe, and Latin America. This makes it mandatory for producers to ensure their production processes the maximum possible level of sustainability, focusing on innovation, quality, services and skilled human resources.
