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Ukranian paper market on brink of collapse.

Pulp and Paper BUSINESS & TRADE
The current situation in the Ukranian paper market is close to catastrophic, according to results of the recent conference organized by the "Ukrainian Association of Publishers and Booksellers".

According to market participants, at present the annual demand for paper in Ukraine is estimated at approximately 90,000 tonnes, however domestic production, primarily of offset paper, currently does not exceed 5,000 tons, with the majority of it being produced at the capacities of Zmievskaya and Korostyshevskaya paper mills

At the same time, the design capacity of Ukrainian paper mills is estimated at 25,000 tonnes of paper per year. In recent years papermaking has become unprofitable in Ukraine, which resulted in a steep decline of its production.

One of the options involves the beginning of paper supplies from China and South Africa, however, due to high logistics costs, implementation of these plans may face with serious difficulties.

By: Eugene Gerden

Simon Matthis
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