How Strikes, Regulations and Disasters Impact Pulp and Paper Supply Chains, Paper360º May/June 2020

The pulp and paper industry enjoyed a collective sigh of relief in February, 2020, when the Finnish paper workers’ strike reached a resolution. Finland is the largest overseas pulp and paper products exporter in the European Union, so when producers like Metsä Group announced a force majeure Jan. 27 that resulted in a shutdown of all its mills, anxiety set in.

According to FisherSolve Next data, Metsä, along with fellow Finnish companies UPM and Stora Enso, produce seven percent of the world’s softwood fiber and 15 percent of Northern soft-wood fiber. News from traders indicated softwood fiber prices in the market increased during the short-lived strike, and some hardwood fiber suppliers such as Suzano, Klabin, and Eldorado considered destocking their products as price gaps for the two grades widened.

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