Prices for toilet paper, diapers and other consumer goods have risen recently.

       The second-largest US toilet paper maker has warned it will soon raise prices on products ranging from toilet paper to diapers.
       Kimberly-Clark said in a press release that the price increases are “necessary to help offset significant increases in commodity prices” reflecting rising supply costs.
       The price increases will take effect in June and will be in the “mid to high single digits,” it said.
        The price increases will affect baby and child care products, adult care products and Scott’s toilet paper. The company is also known for producing Cottonelle and Viva hygiene products, Kleenex, Kotex and Huggies diapers.
        It is unclear whether the price increases will impact shoppers and households. Kimberly-Clark said it would raise list prices, the price it pays suppliers for its products. Retailers decide what to charge consumers at the store level.
       Last year, toilet paper and other essentials quickly disappeared from store shelves in the early weeks of pandemic lockdowns as shoppers spent months stockpiling supplies at home.
       The surge in demand across the country quickly weakened supply chains built on lean inventory and just-in-time principles, leaving the system with little inventory or excess inventory.
        Production is lagging as manufacturers face shortages of raw materials and packaging. Transportation providers are in higher demand but have fewer drivers.
       Arun Sundaram, an analyst at independent business intelligence firm CFRA Research, said in a note that Kimberly-Clark faces a number of headwinds, including declining expected birth rates, soaring supply costs and rising promotion costs.
        During a recent earnings call, Kimberly-Clark CEO Michael Xu said, “We expect the environment to become more challenging, especially compared to last year. We expect some of the net benefits from COVID-19, including higher consumer demand, to reverse. , global commodity prices are rising, and we are reflecting our latest views on economic conditions and fertility trends.”
        The cost of wood pulp, a key component of paper used in toilet paper and other products, rose sharply in February as Chinese speculators raised spot prices by nearly 50%. North American pulp producers have begun moving local supplies east to take advantage of higher prices, further tightening supplies from producers such as Kimberly-Clark.
        Dallas-based Kimberly-Clark became the latest company to raise prices as commodity prices rise. Hormel Foods and Cheerios maker General Mills said they would raise prices to offset higher grain and shipping costs.
       Since the outbreak, increased consumer demand and reduced logistics capacity have led to difficulties in global supply chains and transportation, resulting in increased delays and costs for manufacturers.
       The fragility of interconnected systems came into focus last month after the huge container ship Ever Given blocked all traffic in the Suez Canal, causing global losses of nearly $10 billion a day.
        The Ever Given has been refloated and access to the canal restored, but the delay in cargo could disrupt trade for months due to “supply chain contamination”, one of which could soon affect other places, says John Mangan. Mangan is a professor of shipping and logistics at the University. university. Newcastle University in the UK made the announcement this week.