Apr 2021

Pulp Capacity & Price Changes

• Imported BEKP is currently transacted at $770-780/t and BSKP at ~$980-1000/t in China currently. (Internal & RISI, Apr. 2021)
• Chilean producer Arauco announced its May Order Intake offer prices in China after skipping Apr. allocation: BEK $800/t(+70), BSK $980/t(+80). (Internal, Apr. 2021)
• Brazilian BEK producers exported a total of 1.383Mt of hardwood pulp in Mar’21, of which 511kt are to China. Brazilian BEK export to China in 1Q 2021 totalled 1.414Mt, representing a 18% YoY drop as compared to the 1.725Mt in 1Q 2020. (COMEX Stat, Apr. 2021)
• Pulp producers report continued strong demand in North America this month, with the successful implementation of announced price increases (BSK: +$150, BEK:+$100). Pulp buyers have also been trying to secure additional volume on top of their contractual allocation to avoid the more expensive spot markets. (RISI, Apr. 2021)
• Paper Excellence announced permanent closure of its idle 240ktpa NBSK Mackenzie pulp mill, citing limited capacity and ongoing fibre availability issue. Production at the mill was originally curtailed in Jun. 2020 due to market impacts caused by Covid-19 and lack of economic fibre. (RISI, Apr. 2021)
• Suzano, Eldorado and Klabin announced unchanged BEK price ($780/t) in China for May intake, while setting $80 increase in North America and Europe. The announced price increase puts BEK at $1320/t and $1090/t in North America and Europe respectively. (RISI, April 2021)
• NBSK price announcements: Metsä Fibre announced $1300/t (+80) in Europe for May intake. Resolute Forest Products, Canfor Pulp and West Fraser announced $1665/t (+100) as their May NBSK offer price in North America. (RISI, April 2021)
• UPM Fray Bentos mill is currently in the midst of a scheduled maintenance downtime which runs from Apr. 18 till the first week of May; BEK production loss expected to be ~56kt. (RISI & Internal, April 2021)
• Pulp inventories at European ports increased 10.5% MoM in Mar. to 1.386Mt. Analysts pointed out that end-of-quarter inventory building to supply 2Q, coupled with sellers looking to sell more in Europe with European prices approaching China profitability levels, could have led to the higher port inventories. (JP Morgan, Apr. 2021)
• BHKP inventories at major Chinese ports in Apr. flat against Mar. (Apr’21: 1.27 million tonnes vs Mar’21: 1.29 million tonnes). (Internal, Apr. 2021)

Paper Capacity & Price Changes

• On top of last announcement from March, Lecta now announces another 8% price hike on both CWF&UWF , effective from 1 June. (RISI, Apr. 2021)
• Navigator to increase paper price in Europe by 6 to 9%, effective 10 May. (RISI, Apr. 2021)
• Sappi announced another 8-11% price hike on all paper grades (including UWF) for its export market , effective 7 April. (RISI, Apr. 2021)
• Suzano is pushing another $80 up on CWF&UWF (including Cutsize) &boxboard, effective with May production orders. (RISI, Apr. 2021)
• Suzano slates 10% price hike for boxboard and UWF in Europe, effective May. (Internal, Apr. 2021)
• Stora Enso announced plan to permanently close down pulp and paper production at its Kvarnsveden and Veitsiluoto mills by 3Q 2021; planned closures to reduce its paper production capacity by 35% to 2.6 million tonnes per year. (RISI, April 2021)
• UPM has informed clients in Europe of a Euro 75/tonne price increase for newsprint and a Euro 60/tonne price hike for all of its mechanical and woodfree paper grades. (RISI, April 2021)