New capacity brings potential for production to outpace demand
BOSTON, June 3, 2016 /PRNewswire/ -- Global demand for fluff pulp is growing steadily, but disruptive shifts on the supply side could upset the balance of costs, prices and profitability worldwide. Upcoming capacity expansion projects, along with the recent sale of Weyerhaeuser's fluff pulp assets to International Paper, suggest a shifting competitive landscape. These and other trends are explored in detail by the Outlook for the World Fluff Pulp Market, a new report from RISI – the leading source of business intelligence for the global forest products industry.
"Emerging markets are driving demand growth for fluff pulp, which is used in diapers and other
hygiene products. The industry is responding with capacity expansion worldwide, but there's a
real risk of supply outpacing demand. In this study we explore the impact this could have on
prices and profitability throughout the global fluff pulp market," said Ben Sirois, RISI Economist
and lead author of the Outlook.
The study explores drivers of disruption among fluff pulp suppliers, including:
- Potential for further mergers and acquisitions, in the wake of the recent Weyerhaeuser/International Paper deal
- Possible over-capacity, as new plants come online faster than the market is growing
- Development of fluff pulp made from hardwood, to potentially challenge the dominance of US southern softwood in fluff pulp production
The study also includes supply, demand, cost, and pricing history and forecasts for the entire
world fluff pulp sector. To get access to the report, visit www.risi.com/fluffpulp16.
Companies with historical fluff pulp data included in the study:
Current Fluff Pulp Producers:
Arauco, Domtar, Fujian Tengrongda, Georgia-Pacific, International Paper, Klabin, Rayonier,
Resolute Forest Products, SCA, Stora, Suzano, UPM, WestRock, Weyerhaeuser
Past Fluff Pulp Producers:
Celulosa Cambara, CHH Pulp & Paper, CMPC, Kimberly-Clark, Korsnas, Lwarcel, M-real,
Paper Excellence, Skogall, Tembec
About RISI (www.risi.com)
RISI is the leading information provider for the global forest products industry. The company
works with clients in the pulp and paper, packaging, wood products, timber, biomass, tissue and
nonwovens industries to help them make better decisions. Headquartered in Boston, MA, RISI
operates additional offices throughout North and South America, Europe and Asia.
For Press Inquiries, please contact:
Alan Petrillo
Communications Associate
O: +1.781.778.7592
E: apetrillo@risi.com
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