Mr. Christian from CelCo deliveres his report of DWP market update. Mr. Christian mainly introduces the development of dissolved pulp market from three aspects: supply, demand and pricing.

Supply: Mr. Christian believes that the current supply and demand pattern of DWP has changed greatly, and capacity will continue to expand, and capacity utilization rate has recovered well, but needle pulp supply may remain tight in the next few years.

Demand:  China cellulose represents 51 % of total cellulose demand.  Covid-19 has pushed the demand for wipes and increased the “personal care” market share to higher proportion of DWP usage. Global demand for DWP was down by 8% in 2020. Depending on product mix, some regions were more impacted than others 

Pricing: The margin between VSF and DWP prices have now recovered to 10 years past average. 2020 World DWP prices declined by 9 % with prices for the Textile segment dropping 11 % while Acetate continued to decline 5 % and Ether prices were flat.