Global disruption: the impact of Covid-19 on the bioindustry sector
We are now approximately one month into the period where COVID-19 has significantly impacted everyday life in Europe and North America, with China having of course suffered for longer.
At AFRY, we wanted to review what the impact has been on the pulp and paper sector: what are the effects we have already seen and, perhaps more importantly, what we can learn in terms of understanding the short and longer term outlook for the sector.
Our collection of insights results from collaboration with a number of AFRY experts across different products, and from multiple countries, to ensure a robust and broad analysis. Our summary explores the immediate reactions of large pulp and paper producers and examines the current status and economic outlook of the various related markets, from pulp to packaging.
There is no doubt that this is a challenging time, raising a number of questions. Whilst there are winners and losers, the global pulp and paper sector is resilient. The demand for toilet tissue is well documented, and there is a strong ongoing need for packaging. Graphics paper production will suffer, as it has been doing for some time now. Furthermore, prices having recently plateaued are expected to rise, although the timing of this is open to debate.
In the longer term there are questions about how quickly global economies will bounce back, but for now we can expect some turbulence as the pulp and paper sector, and indeed the wider world, rebalances.