Japan Fukushima nuclear contaminated water discharge incident has no impact on the price of Kingmax cellulose

(August 28, 2023), the issue of nuclear-contaminated water caused by the Fukushima nuclear accident in Japan is still under ongoing discussion, however, as far as Kingmax Cellulose is concerned, the likelihood of the Fukushima nuclear contaminated water discharge having a direct impact on global cellulose prices is relatively low.

The nuclear contaminated water produced by the Fukushima nuclear accident mainly involves the discharge of radioactive substances, while cellulose is a class of organic compounds that are not usually directly associated with radioactive contamination. So, from a scientific point of view, there doesn’t seem to be a direct link between the two.

Cellulose is usually related to wood, plant fibers, etc., and is an important raw material for the production of paper, textiles, and some food additives. Its price is usually affected by supply and demand, raw material prices, production technology and other factors. Unless the nuclear contamination problem has caused major disruptions in related industries, such as wood supply, industrial production, etc., it is difficult to imagine that the Fukushima contaminated water has directly affected cellulose prices.

However, complex changes in the global economy and environment can be interconnected in a variety of ways, so the possibility of some indirect effects cannot be ruled out and can be influenced by a variety of factors. The release of nuclear contaminated water into the sea may cause some international concerns and concerns, which may in turn affect international trade and market psychology.

Possible influencing factors include:

1. Market psychological impact: If the release of contaminated water raises international concerns about the Marine environment and food safety, some consumers and businesses may begin to be skeptical of products related to Japan. This may lead some countries or regions to strengthen testing or take other measures on products imported from Japan, which may have a certain impact on the supply, demand and price of imported products.

2. Trade restrictions: If some countries or regions decide to impose trade restrictions on seafood or other related products from Japan, this may lead to some disruptions in the supply chain, affecting supply and prices.

3. Industrial chain disruption: If the discharge of contaminated water from Fukushima leads to the impact on fisheries or other related industries, it may affect the supply chain of raw materials. Kingmax Cellulose production may involve interactions with fisheries or other industries, and if these industries are disrupted, there may be an impact on the cellulose supply chain.

4. Market supply and demand relations: If the disruption of related industries leads to a reduction in supply, it may have an impact on the market supply and demand relations, and thus potentially affect prices.

If you want more accurate information, it is recommended to consult the latest news reports, industry analysis or research reports of relevant professional bodies. In the meantime, for the latest information on the impact of contaminated water from Fukushima on cellulose prices, please contact our Kingmax Cellulose specialists.