This page contains a Flash digital edition of a book.
TOMORROW’S CLEANING MAY 10

Pulp fact-ion

PULP COSTS ARE ON THE RISE, AND IS SURELY BOUND TO AFFECT THE CLEANING INDUSTRY. BUT WHAT HAS HAPPENED? AND WHEN WILL CONDITIONS IMPROVE?

To some, an increase in pulp prices may seem an irrelevant piece of news that they’ve stumbled across, but it will in fact affect us all, especially in the cleaning industry. It might only make a slight difference when buying your loo roll for the home, but for offices that need to stack up on printer paper, kitchen roll, toilet tissue etc, the price can really mount up.

Manufacturers of the toilet rolls and wipes that we use every day are struggling to maintain supplies to their customers, who in turn supply to the end user, schools, hotels etc, because of a world wide shortage of paper. This shortage has caused a substantial increase in prices.

pressure to the cost of importing raw materials, so even when supplies are obtained, costs will continue to creep up on buyers.

With all this in mind, it certainly looks bleak for the upcoming months in the world of pulp. So is the situation likely to improve? Certainly not quickly or drastically.

Kurt Schaeffer, Vice President of RISI, a leading information provider

occurred when the recent earthquake in Chile damaged their pulp mills and infrastructure preventing them from exporting pulp. The earthquake took an estimated 8% out of the global paper supply and several mills declared Force Majeure.

Also affecting their infrastructure were floods in Brazil, another major producer of pulp, who have now increased their prices as the pulp and paper shortages are causing major problems in the world markets.

Pulp recently hit $918.66 a tonne which is 60% higher than the price last year. The highest ever price for pulp was recorded in 1995 at $1000 a tonne, showing just how steep these prices are becoming.

Over the last few years paper mills have been closed due to a lack of profitability, and reluctance by their owners to inject capital investment, in an effort by the mill owners to reduce supply and increase prices in a depressed paper market. The mills stock holdings have also been reduced in an effort to help them survive the economic crisis and recession.

A sudden disruption of world pulp supplies - pulp is the raw material for paper products -

Although we may expect prices to fall in a recession, a way in which to increase spending, in shortage situations such as these, many are prepared to pay whatever price to obtain supplies. Currently Far Eastern companies are falling victim to this, trying desperately to get hands on what they can.

The earthquake in Chile, which registered at 8.8 on the Richter Scale, not only forced many mills to close, affecting pulp availability, but gas shortages in Indonesia reduced availability (having a knock on effect to tissue production) and the severe winter in the Northern Hemisphere affected timber production, reducing supply and further adding to costs; truly an unlucky few months for this industry.

In regards to pulp availability in the UK, the exchange rate for Sterling has added further

WASHROOM HYGIENE

36 | TOMORROW’S CLEANING | The future of our cleaning industry

for the global forests products industry, said in research notes:

“Post-earthquake, with supply even more limited, pulp buyers are likely to reach out more aggressively to secure tonnage, and pulp sellers are likely to become more aggressive in raising prices.

“It is not inconceivable that prices over the next few months could move up by $200 or more from current levels, in steps of $50-75 or more per month.”

If the market does indeed continue to up the charges of pulp-derived products, there will certainly be a devastating knock on effect for many of us, whether that be changing the way we work, or simply paying a new hefty bill.

For those cleaners who rely on wipes and tissues, it could have devastating, albeit temporary, implications.

The prices are expected, from admittedly few people, to fall by either June or July. Even if this is the case, prices of the pulp-derived products won’t drop again until months afterwards, but you know what they say, what goes up, must come down. At the minute, it’s anyone’s guess as to how the prices will change. With the bad luck the industry has received in past months, let’s hope the silver lining of their grey cloud makes an appearance soon. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70
Produced with Yudu - www.yudu.com