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)

Paper Capacity & Price Changes

• UPM plans closure of UPM Kaipola paper mill in Finland and sale of UPM Shotton paper mill in Wales. These planned actions would result permanent reduction of 970k tons of UPM’s graphic paper capacity. (RISI, Aug 2020)