Analysts expect recovery of pulp and paper sector in Russia starting from 2021

Photo: Ministry of Industry

The Russian pulp and paper sector may start its active recovery in 2021 after its stagnation this year, caused by the pandemic and its economic consequences, according to recent statements, made by representatives of some leading local pulp and paper producers and local analysts in the field of paper business. 

 

According to producers, this year the growth of the market will be insignificant, not exceeding 2-3%, compared to 2019. That will be mainly due to the suspension of implementation of many investment projects in the industry, most of which involved the expansion of capacities, both by leading local pulp and paper producers as well as global majors, operating in the local market (Fig.1).

According to data of the Russian Federal State Statistics Service (Rosstat), since 2016 the overall capital investments of domestic pulp and paper enterprises in their development in the domestic market have been in the range of RUB 70-80 billion (US$1-1,3 billion) annually. Most of these funds were allocated in technological renovation of enterprises. However, it is expected, the pandemic will lead to a significant decline of these figures in years to come.

By: Eugen Gerden