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Global Pulp News Save the date: Barcelona 2018

Save the date: Barcelona 2018

Barcelona in mid-September is becoming an increasingly popular meeting point for the industry, which is why Södra was there in force this year. With the Europulp/Utipulp seminar and dinner as a focal point, the timing is ideal for meeting customers face to face, discussing forthcoming contracts and analysing customer needs for the year ahead.

As well as organising meetings of its own, several Södra personnel attended the Utipulp seminar. Among the speakers was Tom Wright of Hawkins Wright who concluded that while volatility remains a key challenge for both producers and consumers, the long-term outlook for pulp is still strong.

“The drivers underpinning long-term demand look very good indeed,” he said, “The tissue sector, which absorbs an increasing proportion of global market pulp, continues to grow, whilst the availability of good-quality recycled fibre is diminishing. Furthermore, demand for viscose fibre (and therefore dissolving pulp) is increasing very quickly, albeit from a fairly small base. Nevertheless, most of the projected growth depends on China’s macro-economy, which presents a clear risk to any forecast.”

The supply-side has been extremely unpredictable in 2017, with project delays and mechanical issues leading to a very tight market balance through to the end of 2017. Assuming all new capacities eventually reach their potential, there appears to be a surplus looming in 2018. However, no new projects have been announced past 2019, potentially laying the foundations for another sustained upcycle in pulp markets.

Södra’s Marcus Hellberg: “As the market fluctuates, it is more important than ever that we show our customers we are here to support them for the long term. Occasions such as Barcelona are a good starting point to discuss how we can work together to add value and challenge the traditional ways of doing business.”

 

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