COVID-19: what's the impact?

ABSTRACT

This article talks about the impact of COVID-19 to the Canadian pulp market. The situation surrounding the pulp market is presented, where in 2019, the pulp and paper market in Canada has been tightening due to unexpected downtime and excess inventories returning to a more balanced level. China on the other hand has been slowly getting industrial operations started again after a mandatory quarantine period and travel ban brought the country to a halt. In North America, consumers have been panic buying and stockpiling household products including bath tissue for weeks, leading to shortages at major retailers like Costco and Walmart. While psychologists call the hoarding ritual in times of crisis natural, it's led to empty shelves and frustrated shoppers. Tissue producers are now ramping up to meet the demand - but the extra capacity might be a short-term silver lining. With the news about COVID-19 changing almost hourly, the markets remain uncertain and difficult to predict. Canadian pulp and paper mills, especially those in British Columbia, are particularly challenged during this unprecedented time because of the fibre shortages and very low pulp prices.