By: Srilakshmi Preethi -- Senior research Analyst
30 June, 2014
1. Introduction: Latin America has started to implement the planned capacity additions of over 15 million metric tons of chemical pulp through 2020. Europe and N.A are also in the race, though at a distant behind. This announcement comes in at a time when the economic situation is not as strong as expected (even the emerging BRICS nations are reporting weak numbers currently), demand is weak globally and there is a threat of oversupply for many grades along the forestry value chain (from timber to any form of paper or paperboard). All these capacity expansions (especially in L.A) are targeted towards Asia ? China in particular. China on the other hand is on a recycled paper and board expansion spree and requires OCC for these expansions. However, focus on Kraftliner and Ivory board has also been picking pace in China. So will China find the right balance between OCC and pulp? Will the estimated OCC supply & recovery rates suffice China?s raw material requirements till 2020 or will China move towards procuring pulp, justifying Latin America?s expansion plans?
COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)