PrintWeek reports that global events have tightened the supply of paper, resulting in paper allocation for the first time since 2001. Factors in the mix are wide-ranging with the surging global demand for pulp being at the forefront, fuelled by its ever-expanding uses in new and existing markets, such as hygiene and tissue products, as well as the backlash against plastic with manufacturers seeking paper-based alternatives.
According to Mario di Lieto, managing director of a Stora Enso division “There’s a much broader use for cellulose today than just making paper. It’s being used as a plastic substitute, for clothing, for biomass energy, all sorts of applications.” As a result of this soaring demand, pulp prices have been pushed up from $700-$750 a ton a year ago, to nearly $1,200 causing a ripple effect across the print and packaging industry.
Meanwhile, before this latest interest in paper as a substitute for plastic packaging, numerous manufacturers had mothballed or converted factories to make carton board. China, for example, closed 279 pulp & paper mills and redirected much of their tonnage away from Europe and the west coast of the US. Furthermore, many publishers have switched paper grades, looking for cost reductions, and applying more pressure on already short supplies.
According to Mario di Lieto, managing director of a Stora Enso division “There’s a much broader use for cellulose today than just making paper. It’s being used as a plastic substitute, for clothing, for biomass energy, all sorts of applications.” As a result of this soaring demand, pulp prices have been pushed up from $700-$750 a ton a year ago, to nearly $1,200 causing a ripple effect across the print and packaging industry.
Meanwhile, before this latest interest in paper as a substitute for plastic packaging, numerous manufacturers had mothballed or converted factories to make carton board. China, for example, closed 279 pulp & paper mills and redirected much of their tonnage away from Europe and the west coast of the US. Furthermore, many publishers have switched paper grades, looking for cost reductions, and applying more pressure on already short supplies.
