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Brazilian truckers’ strike expected to squeeze hardwood pulp supply

12 Jun 2018 − 

The truck drivers’ strike in Brazil, the world’s largest producing country for eucalyptus pulp, has led to significant production downtime in the country’s pulp industry and has also entailed severe delays in pulp deliveries. Experts believe that the coming months will see another tightening of hardwood pulp supply.

Brazilian pulp producers have now returned to normal operations in most cases. But the 11-day strike in May led to serious supply bottlenecks, massive traffic problems, production stoppages and delivery delays. The extent of the production losses is only now being determined and the consequences of the Brazil-wide protest will only be felt by buyers in Europe in a few weeks’ time, when the pulp that was not produced or was shipped with a delay is missing in the supply chain, experts agree.

Suppliers say that the inventory levels at Brazilian production sites are extremely low and they warn that customers will have to deal with volumes being reduced in the coming weeks. It is considered likely that the curtailed production in Brazil will create new tailwinds for hardwood pulp prices, which are expected to remain stable or even go up further during the summer, market experts forecast.

This article is an excerpt from EUWID's report on the pulp market in Western Europa. Read the full market report in EUWID Pulp and Paper no. 24/2018, which will be published on 13 June.

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