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Sector Report

Q1 2020: COVID-19 shutdown grinds on global pulp market dynamics

  • Multi Asset
  • Materials
  • Global

Pulp is a big part of everyday life. It's used for a range of products including paper, packaging, tissue and clothing — to name a few. The chaos caused by COVID-19 has disrupted the shipping industry and driven unprecedented demand for certain products. Third Bridge Forum spoke to experts to understand how the pandemic is affecting this industry.

Pulp is a big part of everyday life. It is used for a range of products including paper, packaging, tissue and even clothing — to name a few. The global pulp industry has been through the mill somewhat in recent years against the backdrop of price fluctuations, the US-China trade war and inventory overhangs. After a run-up on price, demand started to tail off for market pulp YoY for the first time in a long time towards the end of 2018. Although an ensuing price correction led to renewed demand, particularly for softwood, a significant inventory overhang in hardwood remained the focus of 2019. 

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