A clearer picture of the pulp market has emerged from the uncertainty that gripped the market a year ago. We are now largely free from the burdens of logistics constraints and pandemic policies, but the volatility in pulp prices witnessed over the past two years remains front of mind. For many in the global pulp industry, skepticism of an extended downturn in the pulp market is still present.

• Pulp inventory volumes are at a record high, with more capacity expansions to come
• Temporary and permanent mill downtime and closures will play an important role in balancing inventories
• Pulp demand will be dictated by shifts in the inventory cycle in the short term
• Production costs play more of a role than ever for pulp producers
• Additional market risks and drivers to watch out for, including China’s economic recovery, US interest rates and the strength of the dollar and sudden shifts in future pulp availability