RISI study: Tariffs, slowing economy add to China's pulp market uncertainty; hygiene uses are a bright spot
BOSTON, March 7, 2019-
Where China leads, global markets follow – and the path ahead for its pulp and paper industry is uncertain. China's GDP expansion slowed markedly in 2018, pulp prices have moderated following the third-longest price runup in recent history, and new trade restrictions threaten to stifle demand for wood fiber and finished goods. Still, China's fundamentals will sustain growth in key segments over the next decade, finds Developments in the China Pulp Market: A Comprehensive Analysis and Outlook, a new Special Study from Fastmarkets RISI.
"The entire industry is asking whether it faces a pause in Chinese growth, or if the market is at the precipice of the next global recession and a collapse in demand," said David Fortin, Fastmarkets RISI Vice President for Fiber Markets and co-author of the study. "Our base case forecast assumes growth will resume, but many risks remain."
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