September 2020

Pulp Capacity & Price Changes

• Sentiment in global pulp market has improved as we exit the seasonally slower summer months; the prospect of higher than normal maintenance shuts during Q3 and the low market prices have helped to support order books and prevent erosion in Europe and Asia. Weakening US dollar has also improved affordability in key markets such as China and Europe (Internal, Sep 2020)
• Major ports see drop in inventory - European ports (woodpulp) inventories level see drop of -4.6% compared against previous month (1.59 million tonnes in July ‘20). Similarly, China ports (BHKP) a drop of -4% against previous month (1.32 million tonnes in Aug ‘20). [Europulp & RISI, Sep 2020]

July 2020

Pulp Capacity & Price Changes

• Global chemical market pulp producer inventories increased by three day-of-supply in Jun ‘20, to 46 days overall; BSK increased four days to 42 days of stock, while BHK maintain at 49 (PPPC, Jul 2020)
• In China, several dominant Chinese paper and board (P&B) producers and traders are set to take concerted action to prevent pulp prices from falling further. A critical step is to snap up the entire Q3 volume of hardwood at the fixed prices proposed by major Brazilian producers. They hope to keep the positive momentum alive until Q4 when the Chinese P&B market enters its peak period. (RISI, Jul 2020)

June 2020

Pulp Capacity & Price Changes

• Global chemical market pulp producer inventories increased by three day-of-supply in May, to 44 days overall; BSK increased four days to 38 days of stock, while BHK rose three days to 49 (PPPC, Jun 2020)
• Due to COVID-19, most mill are postponing its maintenance downtime from Q2 to Q3/4 (RISI, Jun 2020)

May 2020

Pulp Capacity & Price Changes

• Global producer inventories fell by two days of supply to 39 days in March 2020 (36 days for BSK and 43 days for BHK). This is 15 days lower than March 2019. (PPPC, May 2020)
• Europe and China port inventory has reduced: China Port Inventory fallen to 1.3m ton (Peak 2.3m, Q3 2019), Europe Port Inventory fallen to 1.5m ton (Peak 2.0m, Q3 2019). [Europulp and Internal, May 2020]
• In all, BHKP supply has being reduced by ~ -550k ton (till date) due to COVID-19 impact. (Internal, May 2020)

Apr 2020

Pulp Capacity & Price Changes

• Latin American producers, including Suzano and Eldorado, announced price hike of +US$30/tonne for hardwood pulp in Europe, North America and Asia regions. [RISI, Apr 2020]
• Hardwood pulp price hike is supported by ongoing tissue-driven demand and also, tissue producer(s) are using more kraft pulp than recycled fiber/paper. (Internal, April 2020)
• Pulp inventory beginning to normalise at major ports, where both Europe and China port inventory are reduced to 1.3 million ton level. [Europulp and Internal, Apr 2020]