Toilet-Paper Supply at Risk as Russian Bans Cause Pulp Shortage

By Dayanne Sousa and Kati Pohjanpalo
Bloomberg Investing
October 12, 2022
Category: Finance & Economics
Region: International

Add toilet paper to the list of products facing higher costs and fragile supply chains in the wake of Russia’s invasion of Ukraine. A ban on Russian birch exports… has touched off a scramble for pulp, paper’s primary ingredient. …It’s the latest crisis to hit the supply of toilet paper, a frequent victim in the various supply chain snarls that have afflicted commodities markets since the start of the pandemic. …Subsequent logjams of container ships in ports further disrupted global flows of paper-making wood fibers. Russia prohibited the export of birch wood in March in retaliation to sanctions. Consequently, about 800,000 to 1.2 million metric tons of pulp is expected to disappear from the market, according to industry estimates. Pulp prices have already risen around 45% this year. Now, paper producers are having to compete further afield to secure their raw material.

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