Mar 2020

Pulp Capacity & Price Changes

• Market pulp demand has been resilient, largely due to price mechanism (prices at cost level) and stronger demand for tissue and packaging [Hawkins Wright Webinar, Mar 2020]
• COVID-19 cases has been discovered in a few Latin America mills. Arauco and Horcones mills are asked to suspend operations for 14 days. Other mills (Suzano and CMPC) are allowed to continue production and have placed affected staff under quarantine. [RISI, Mar 2020]
• In April 2020, several overseas suppliers are seeking hikes for BHK sales to China of up to USD$30/tonne. Asia Symbol has decided to follow their lead and announced an increase of RMB 200/tonne (USD$28/tonne) for BHK pulp, effective for April orders. [RISI, Apr 2020]

Paper Capacity & Price Changes

• India’s national lockdown sees domestic paper and board production come to a halt for 21 days (starting 25th Mar), which will result to ~300kt reduction in paper supply. [RISI, Mar 2020]
• Paper mills in South Korea and Thailand are expected to see production curtailment in April and May 2020, which could result in another ~50kt reduction in paper supply. [Internal, Mar 2020]
• Packaging Corp. (PKG), the third-largest N.A. uncoated freesheet producer, announced it will temporarily idle both paper machines at its Jackson, UWF paper mill in May and June 2020. Production is expected to be reduced by 70kt over this period. [RISI, Apr 2020]