The report highlights that global dissolving pulp capacity continues to shift toward Asia and South America, with China remaining the largest importing market. In terms of production, the hardwood kraft process remains the dominant technology.

The industry is currently facing multiple challenges, including rising wood costs, increasing labor expenses, and declining competitiveness of older pulp mills. As a result, producers in Europe and North America are at a structural disadvantage in terms of cost competitiveness.

At the same time, increased price volatility in dissolving pulp has encouraged companies to expand along the value chain and pursue vertical integration. In the Lyocell fiber segment, Chinese producers have already established a clear cost advantage, strengthening their global positioning.

Looking ahead, AFRY expects capacity to continue shifting toward lower-cost regions in the Southern Hemisphere, while integrated producers will be better positioned to manage price risks. In particular, value creation along the Lyocell supply chain is expected to become a key strategic focus for the industry.