Oil & Gas Market Recovery and Performance Update
Markets impacted by COVID-19 in the short
term, long-term drivers remain solid
SHORT TERM IMPACT
OF COVID-19
Graphic Paper Demand declined, particularly advertising-driven paper
consumption and office paper demand
☐
Tissue
Packaging
Pulp
Printing & Writing demand expected to decline by up
to 20% in 2020
High demand in H1/2020
Increased demand for more high-quality virgin fiber
based (at-home) tissue and hygiene products
Strong demand for online and packaged daily
consumer goods.
Higher consumer demand will only partly offset the
falling demand for industrial and B2B-transport
packaging
Pulp demand solid
Wastepaper collection and sorting interrupted
LONG TERM IMPACT
OF COVID-19
Structural decline and digitalization likely to
accelerate
Some recovery on print advertisement and office
paper possible after situation normalizes
Resilient demand
Megatrends (growing middle-class, growing
GDP of emerging countries) remain intact
E-commerce growth to accelerate
Other megatrends (plastics replacement,
growing urban middle class) remain unchanged
Demand supported by packaging and tissue
demand
Efficient pulp mills coming online forcing
high cost and old pulp mills out of market
EXPECTED CAGR
2020-2026*
-2-3%
+2-3%
+2-3%
+1-2%
Sources: RISI, Hawkins Wright, Pöyry, management estimation
*End market
Kemira
APRIL 27, 2021
INVESTOR PRESENTATION
32View entire presentation