Mar 2020

Pulp Capacity & Price Changes

• Market pulp demand has been resilient, largely due to price mechanism (prices at cost level) and stronger demand for tissue and packaging [Hawkins Wright Webinar, Mar 2020]
• COVID-19 cases has been discovered in a few Latin America mills. Arauco and Horcones mills are asked to suspend operations for 14 days. Other mills (Suzano and CMPC) are allowed to continue production and have placed affected staff under quarantine. [RISI, Mar 2020]
• In April 2020, several overseas suppliers are seeking hikes for BHK sales to China of up to USD$30/tonne. Asia Symbol has decided to follow their lead and announced an increase of RMB 200/tonne (USD$28/tonne) for BHK pulp, effective for April orders. [RISI, Apr 2020]

Feb 2020

Pulp Capacity & Price Changes

• OKI mill extended its production curtailment until the end of Mar’ 20, due to shortage of clean water, reducing ~212kt of pulp supply to market. [RISI, Feb 2020]
• Suzano announced that 1.1 million ton of inventory has being cleared in 2nd half of 2019, where its inventory level in 2019 is lower than 2018. Also, pulp outlook remain positive despite COVID-19 outbreak, as this result of increase tissue consumption in China (and globally). [RISI, Feb 2020]

Jan 2020

Pulp capacity & price changes

• APP announced curtail production in OKI mill (until end Feb) due to water supply shortage. [RISI, Jan 2020]

Oct to Dec 2019

Pulp capacity & price changes

• Producers’ inventory in August declined by 2 day, to 50 days of supply – hardwood inventory unchanged from July (flat at 62) and softwood inventory declined by 3 days (to 37). [PPPC, Sep Report]

July to Sept 2019

Pulp capacity & price changes

•CMPC CEO mentioned studying possibility of downtime extension in Q3 due to current low pulp prices (RISI, 11 Sep 2019)