Paper Product Shortages the Unintended Consequence of Mill Curtailments and Shutdowns

The mill curtailments and complete mill shutdowns in British Columbia and other parts of North America were supposed to help bring supply and demand back into balance. And while that has been an effective tool in starting to stabilize the lumber and panel markets, there has been an unintended consequence of the production slowdown – the lack of availability of wood chips. The wood chips that are required to make toilet paper and wipes which are in high demand during the COVID-19 pandemic outbreak. According to Derek Nighbor, president and CEO of the Ottawa Ontario based Forest Products Association of Canada (FPAC), “The demand from pulp mills has gone up at a time when we’re starting to see the chip supply become more scarce from the sawmills. It could drive the cost up or there could be product constraints for sure in the months ahead.”