Toilet paper supplies may suffer due to Russian bans

Russian birch export ban could affect supply chain toilet paper and possible price increases, according to a Bloomberg report.

export Russian birch, the fibers of which are used to soften medical products, was banned by Russia in response to sanctions imposed by the United States and the European Union after the conflict with Ukraine.

This situation has created a challenge for the production of pulp, the main ingredient in paper, with between 800,000 and 1.2 million metric tons of pulp expected to disappear from the market.

estimates industry It is estimated that pulp prices have already risen by about 45% this year due to the increase in the cost of energy needed to obtain the raw materials used to make paper.

In addition to the shortage of Russian wood and the high cost of energy, several unplanned outages in factories they are limiting the world supply of pulp: there was a labor strike in Finland earlier this year; and in July, due to a drought in Spain, the manufacturer closed its plant.

At the same time, it is estimated that until last month the market lost more than 1.4 million tons of pulp. According to Santander-based analyst Rafael Barcellos, the pulp market will be limited until the second half of 2023.

The analyst notes that a gradual decline in prices is expected after factories under construction in Chile and Uruguay begin to export their products next year.