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]

Paper Capacity & Price Changes

• *APRIL* announced new round of price hike: Non-china market +50 USD/t Feb order, china market +77 USD/t for order after LNY [RISI, Jan 2021].
• *Asia Symbol* announced new round of price hike: +500 RMB/t (+77 USD/t) on CS & OS paper, effective from 1st Feb [Internal, Jan 2021]
• *Chenming* announced new round of price hike in china market +77USD/t on it P&W paper, effectives from 25th Feb [RISI, Jan 2021].
• *Sappi Europe* announce price hike +50 USD/t on all fine paper grade for all oversea market as of Feb production and Mar shipment [RISI, Jan 2021].
• *Burgo* announced price hike for both CWF & UWF +50 euro/t to all European markets, for deliveries from 1st March [RISI, Jan 2021].
• *Lecta* announced price hike for both CWF & UWF 8% to 10% globally, for deliveries from 1st March [RISI, Jan 2021].
• *Suzano* announced new round price hike for march production on top earlier price hike for Feb order: + 50 USD/t on both CWF & UWF, effective from 1st Feb [RISI, Jan 2021].