issue January 2023

Dear Enthusiasts,
WORLD NEWS
Wishing you all a very Happy New Year! We hope that all of
you have a fabulous year ahead and that you seek prosperity
Sri Lanka and Russia to use Indian rupee for international
and growth.
trade, and more countries in talks. According to reports,
Sri Lankan banks have opened special rupee trading
The year 2022, was a roller coaster of sorts, with the year
accounts known as Special Vostro rupee accounts, or
seeing rapidly increasing pricing owing to increased demand,
SVRA, for trading in INR.
buoyed supply of pulp, and a major energy crisis. Towards
the end of 2022, we have not only seen a reduction in
China gains unprecedented energy control thanks to
demand, but also the outbreak of the pandemic in China,
landmark gas agreement with Qatar. Beijing has been
which resulted in a global slump in pulp demand and
discreetly - and carefully - expanding its presence in the
softening of prices. This was also stimulated with an
Gulf and aims to become a significant stakeholder in one
increase in pulp output from South America.
of the largest natural gas fields in the world, giving it
significant control over energy.
The year 2023, will also have its share of surprises. Factors
in the global economy depend on the Chinese Government
Global coal consumption to reach an all-time high this
policies on the virus, Central Bank Rate increases, the end to
year. Due to high gas prices as a result of Russia's
the devastating war in Europe, and the stability of shipping
invasion of Ukraine and the resulting supply disruptions,
costs. These factors can vastly affect the prices of goods
some countries have turned to relatively cheaper coal
throughout the year. However, it is our vague prediction that
this year.
we should see a reduction in prices around the Second
Quarter of this year, and stability and moderate increases
through the end of the year. The same is owing to the below EU sets a minimum 15% tax rate on multinationals
facts: worldwide. The historic agreement between nearly 140
countries is intended to put an end to governments
1. By Q2 2023, mills would have started consuming racing to cut taxes in order to attract the world's
cheaper pulp bought, and hence would try and fill their wealthiest firms to their territory.
capacity. China will also be aggressive, as the production
output in December and January is relatively low owing to The Dutch use the warmth generated by bitcoin mining
the outbreak. This would put pressure on demand, and to grow tulips, reducing farmers' reliance on gas. Tulips
we would see price slides. and bitcoin have both been associated with financial
2. Through Q1, many central banks would seek increasing bubbles in the past, but the Dutch are attempting to
central bank rates, putting pressure on liquidity. make them work together in a massive greenhouse near
Countries in the west that have been enjoying low rates Amsterdam.
of interest, would face the highest difficulty, stagnating
growth, and putting inflation under control. This might Foxconn invests $500 million in its India unit. This comes
lead to a dip in demand. as the world's largest contract manufacturer plans to
3. This situation should normalize by Q3, 2023 when an expand manufacturing in the country in the face of
equilibrium would have initiated between supply and disruptions in China.
demand, and mills would work on reducing capacity or
slowing their machine's demand seeking increases
before the flag end of the year
4. Shipping is expected to be operating at the said levels IMPORTANT DATES OF JAN 2023
and might dip ever so slightly, as the system has

acclimatized to the global demand curve with the

addition of new vessels and containers. Also, the 01st Jan: New Year
containers stranded in the West and East have now 13th Jan: Lohri
normalized. 22nd Jan: Chinese New Year
The above is our prediction, however, we advise you to take 26th Jan: Republic Day
it as a viewpoint, and seek your requirements, based on the
best price out there. We do not see any more supply chain
shocks ahead unless there is another unforeseen event that
alters the course.

QUOTE OF THE MONTH

We wish you all the best, and growth and seek your

everlasting support. " The limits of the possible can only be defined by
going beyond them into the impossible. "
Best wishes,

Vedansh Gupta - Arthur C Clarke

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INDUSTRY NEWS
REVIEW
Toscotec will provide a second tissue line to Saudi
Paper Group on a turnkey basis. The new AHEAD 2.2L
machine (PM5) will be a complete turnkey project,
following Toscotec's supply of an entire AHEAD 2.2S
line, which is currently being built at the same tissue
mill.
Metsä Tissue's Katrinefors Mill Expansion in Sweden
has received an environmental permit. Metsä Tissue is
elated with the decision on the environmental permit,
and will now analyse the details of the decision and
prepare for the investment decision.
Södra starts a remarkable initiative to electrify
transportation. The association is starting a new project
to investigate the potential for running trucks, forklifts,
and loaders that are powered by electricity in the
future to further reduce its emissions from fossil fuels.
Papira® by Stora Enso is a paper-based recyclable
packaging foam. Stora Enso is currently working with a
number of customers to conduct tests and validate the
material and its properties in a variety of applications.
Gayatrishakti, an Indian paper and board manufacturer,
will receive the first tissue line from Toscotec. It is
entering the tissue market with this new line, which is
set to begin production in 2024. The sheet trim width
of the AHEAD 1.8 tissue machine is 2,850 mm, the
operating speed is 1,800 m/min, and the production
capacity is over 35,000 tpy.
Mitsubishi HiTec Paper has raised its prices. It is
raising the prices of its entire range of coated
speciality papers (thermoscript®, jetscript®, giroform®,
supercote®, and barricote®) by 7 to 9% for deliveries
beginning on February 1, 2023. In order to offset
inflationary cost increases in the chemical, pulp, and
logistics sectors, price adjustments are required.
meet
Mr. Roll
PULP AND PAPER INDUSTRY 2022 YEAR
Pulp and Paper is an industry experiencing rapid growth
in the current market. New inventions and trends are seen
to be sprouting in a variety of fields. Numerous industries
have advanced through diverse products ranging from
tissues and towels to cutting-edge paper sales.
While digitalization together with the idea of sustainable
development has certainly caused the priorities of
people to shift from paper to screens, the paper and pulp
industry still seems to be booming as of 2022.
The first half of the year definitely saw a decline in the
sector’s production rate due to various factors like
strikes among workers and the Russian-Ukrainian war but
the latter half of the year saw slow and steady growth in
the industry.
What caused a disruption in the supply of pulp in Early
2022?
The first disruption was the strike initiated by The
Paperworkers’ Union on 1st January 2022 in many Finnish
Mills. Over 2000 union members were a part of the strike
that lasted till April.
Some of the major factors increasing the market demand
for pulp and paper include the following:
Increased demand for packaging
For the past two years, the demand for paper-based
packaging in Europe has constantly risen. This year, the
folding carton board has been the most sought-after
item, and the demand is projected to rise by 4.9%.
In April of last year, the Plastic Packaging Tax was put
into effect in the UK, which prohibits companies from
utilizing or importing items packaged in plastic that
contains less than 30% recycled content. This led to a
greater demand for different sustainable packaging
alternatives throughout the nation.
Technology in production
The paper industry is seeing an ongoing progression in
technology, with new, innovative solutions being used to
boost productivity and product excellence.
A recent advancement is the installation of smart
sensors, which can measure and monitor the pulp and
papermaking process to increase productivity, quality,
and adaptability. Experts anticipate that the sector will
benefit greatly from this new tech.
These advanced sensors are able to work without wires
in high temperatures which aids in lowering total energy
use. If the P&P industries keep developing such cutting-
edge technology, they will certainly be able to boost
their production.
Stay in touch with the latest updates of the pulp and
paper industry only with Coniferous.