Global Dissolving Pulp Capacity Totals 7.5 Million Metric Tons in 2015

Research and Markets, Dublin, Ireland, has announced the addition of Global and China Dissolving Pulp Industry Report, 2016-2020 report to its offering. Dissolving pulp refers to pulp with a cellulose content above 90%, including primarily wood pulp, bamboo pulp, and cotton pulp (dissolving pulp in this report just involves wood and bamboo pulp). Viscose fiber, the main application field, accounts for 75% of total consumption of dissolving pulp.

Global dissolving pulp capacity totaled about 7.5 million tons in 2015, mostly distributed in the regions/countries with rich forest resources, including North America, South Africa, and Brazil. 

The world's major dissolving pulp producers are Sappi, Aditya Birla, Lenzing, Sun Paper, Bracell, Rayonier, etc., which produce mainly dissolving wood pulp and hold a combined 57% share of the global total capacity. The dissolving pulp produced by Lenzing is completely used for in-house production of viscose fiber.

Globally, there are still a number of dissolving pulp projects under construction in 2016, such as Lenzing's ongoing dissolving capacity expansion, Aditya Birla's new 200 metric kiloton dissolving pulp project in Laos, and Domtar's 516 metric kiloton dissolving pulp renovation project launched in early 2015. With ever-growing dissolving pulp capacity, global dissolving pulp prices will remain low on the whole over the next couple of years, according to the news report.

Because of a shortage of forest resources, the Chinese dissolving pulp companies have been plagued with higher production costs and weaker competitiveness. During 2012-2015, due to sluggish demand for viscose staple fiber, dissolving pulp overcapacity, and the impact of international low-cost dissolving pulp on domestic market, the dissolving pulp sector in China almost suffered losses across the industry.

With the implementation of the Chinese government's anti-dumping rulings and gradual recovery of downstream viscose staple fiber industry, it is expected the country's dissolving pulp sector will bottom out during 2016-2020 with output and apparent consumption of dissolving pulp amounting to 320 metric kilotons and 3,184 metric kilotons, respectively, in 2020.