PAPER INDUSTRY UPDATES MAR 2021

Mar 2021

Pulp Capacity & Price Changes

  • Hardwood producers Suzano, Eldorado and CMPC have announced new list price of $780/t for April intake in China. This is $50-60/t increase from their announced prices for March. April Softwood intake prices in China currently range between $980-1010/t: Celgar $980, Domtar & Northwood $1010/t. This is at least $30/t higher than the March intake prices. (RISI & Internal, Mar. 2021)
  • Chilean producer Arauco announced that it has no Hardwood and Softwood allocation for China in April, as a result of production issue following downtime. (Internal, Mar. 2021)
  • Further price increases in Europe and North America in April: BEK producers Suzano, Klabin and Eldorado have announced new list price of $1010/t (+100) in Europe and $1240/t (+100) in North America for April deliveries. North American Softwood producers Canfor Pulp and West Fraser have announced $1565/t (+145) for US NBSK in April. (RISI, Mar. 2021)
  • Woodpulp inventories at European ports record the sixth consecutive month of decline (Feb’21: 1.25 million tonnes vs. Jan’21: 1.27 million tonnes, -1% MoM). BHKP inventories at major Chinese ports in Mar. declined against Feb. (Mar’21: 1.29 million tonnes vs. Feb’21: 1.34 million tonnes). (Europulp & Internal, Mar. 2021)
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PAPER INDUSTRY UPDATES FEB 2021

Feb 2021

Pulp Capacity & Price Changes

  • Pulp prices continue on a strong rally, with the global pulp demand-supply balance tightening considerably.
  • Hardwood producers including Suzano, Arauco, CMPC, Cenibra, Klabin, Eldorado have announced new list prices of $720-730/t for March intake in China. This is $100-110/t increase from their announced prices for Feb. Softwood producers have announced similar increases for their Mar intake: Arauco $900/t (+90), West Fraser Cariboo at $950/t (+150). (RISI & Internal, Feb 2021)
  • With the previous price increases successfully implemented, hardwood producers including Suzano, Klabin and Eldorado have announced $910/t (+90) in Europe and $1140/t (+100) in North America for Mar deliveries. (RISI, Feb 2021)
  • Woodpulp inventories at European ports continue to see drop month-on-month (Jan’21: 1.27 million tonnes vs. Dec’20: 1.31 million tonnes, -3% MoM). BHKP inventories at major Chinese ports in Feb rose against Jan, attributed to lunar new year break (Feb’21: 1.38 million tonnes vs. Jan’21: 1.16 million tonnes). (Europulp & Internal, Feb 2021)
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PAPER INDUSTRY UPDATES Jan 2021

January 2020

Pulp Capacity & Price Changes

  • Hardwood and softwood prices in Asia have risen by more than $150/t and $200/t respectively since Nov 2020. The recent rally in pulp prices can be largely attributed to improving macro sentiment, low inventories on the supply chain (in part due to weaker production) and rising logistics costs [RISI, JP Morgan & Internal, Jan 2021].
  • Hardwood suppliers Suzano, Arauco, CMPC and Eldorado have all announced a 3rd consecutive round of hike in Feb.
  • --> For China market, current BEK prices are $620/t for contract volumes and $670/t for spot tonnages [RISI & Internal, Jan 2021) --> For Europe and North America, with the $70 Jan. BEK hike also realised, Suzano and Eldorado have tabled another round of $70/t increase, bringing BEK list prices to $820/t and $1,040/t in the two markets respectively [RISI, Jan 2021].
  • Major ports see drop in inventory – wood pulp inventories at European ports saw a drop of 12% compared to previous month (Dec 2020: 1.31 million tonnes vs. Nov 2020: 1.49 million tonnes). Similarly, BHKP inventories at major Chinese ports record a drop of 9% against previous month (Jan 2021: 1.16 million tonnes vs. Dec 2020: 1.27 million tonnes] – [Europulp & Internal, Jan 2021]
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PAPER INDUSTRY UPDATES –Dec 2020

December 2020

Pulp Capacity & Price Changes

  • Observation of strong demand and positive pulp price momentum in China and other parts of the world this month. Customers in Asia have been largely acceptant of the ~$30-50/t hike put across by pulp producers, moving swiftly to confirm order tonnages [RISI & Internal, Dec 2020].
  • Suzano and other hardwood producers (Eldorado, CMPC and Klabin) announced a 2nd round of $30/t hike (to $530/t) for China, effective with Jan shipments. For Europe and North America, Suzano and Eldorado have also tabled a $70 hike for Jan shipments, bringing the list prices to $750/t and $970/t respectively [RISI, Dec 2020].
  • Major ports inventory: China ports BHKP inventory down 7.5% MoM in Dec 2020 (Dec 2020: 1,351kt vs. Nov 2020: 1,460kt), while European ports woodpulp inventory inched up 1% MoM in Nov 2020 (Nov 2020: 1,487kt vs. Oct-20: 1,470kt) – [Internal & Europulp, Dec 2020]
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PAPER INDUSTRY UPDATES Nov 2020

November 2020

Pulp Capacity & Price Changes

  • Global producer inventories declined to 39 days of supply in Oct ‘20 (36 days for softwood and 42 days for hardwood) and were seven days lower than Oct ‘19. (PPPC, Nov 2020)
  • In China, hardwood pulp demand is robust, with high-quality packaging grades enjoying particularly strong run and P&W papermakers witnessing some seasonal momentum. This result of (some) acceptance of USD$20/t price hike in Nov ‘20; from $450-470/t in Oct ‘20. (Internal, Nov 2020)
  • In rest of Asia, hardwood pulp demand continues to improve with the gradual reopening of the economy and also, higher demand from year-end printing season (calendar / diaries) (Internal, Nov 2020)
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