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]

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)

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 (wood pulp) 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)