October 2020

Pulp Capacity & Price Changes

• Sentiment in global pulp market has broadly improved as we enter the last quarter of the year; pulp prices are mostly stable or up globally. (Internal, Oct 2020)
• Major LATAM producers have announced price increase in China - 3rd week of October. Suzano, CMPC and Arauco have increase its BHKP price by USD$20 (to USD $470/t - USD $485/t). (Internal, Oct 2020)

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]

August 2020

Pulp Capacity & Price Changes

• Global pulp markets have been relatively stable since July ‘20; the prospect of higher than normal maintenance shuts during Q3 and the very low market prices have helped to support order books and prevent further erosion in Europe and Asia. Weakening US dollar has also improved affordability in key markets such as China and Europe. (Hawkins Wright, Aug 2020)
• Price hikes announced by softwood producers have largely gone through this month. Reduced supply from Canada and Chile and recent RMB appreciation support recent price hike. (RISI, Aug 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)