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]

Paper Capacity & Price Changes

• APP Indonesia announces 10 - 15% increase on all its fine paper grades, citing sharp increase in shipping costs and continued increase in pulp and chemicals costs [RISI, Dec 2020].
• APRIL announces additional $50 (on top of $50/t previously announced) with a total $100/t price hike on all fine paper product for Q1 2021 [RISI, Dec 2020].
• APP China announced another 300RMB ($46/t) on cut-size paper, effective from 1st Jan 2021; Chenming announced 500RMB ($77/t) on all wood-based paper product, 200RMB ($30/t) on mixed wood paper product, effective from Jan 2021 [Internal, Dec 2020].
• Brazilian producers of UWF paper have separately announced 10-15% price hikes in the domestic market. Suzano, International Paper Brasil, CMPC and Santa Maria informed their clients that price increases will be effective with Jan shipments; Asia P&W importers also announced price increases to Mexico as rising freight costs hurt shipments from Asia in Dec [RISI, Dec 2020].
• On top of the previous price rise of $50/t for Jan order, Navigator announced further paper price hike from 4% - 6% (minimum 30 euros/t) from 1st Feb 2021 [RISI, Dec 2020].