Global pulp prices are heading towards record highs, threatening higher paper and packaging costs, as supply disruptions in some of the world’s biggest producing countries coincide with a recovery in demand.

“There is a squeeze on the pulp market,” says Linus Larsson, at SEB Enskilda in Stockholm.

Pulp is the raw material used to manufacture newsprint, fine paper, magazine paper, and cardboard and analysts forecast that paper and packaging rates will increase soon.

Reported by FT.com on Tuesday, 16 March 2010 (on March 16, 2010)

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