May 2020

Pulp Capacity & Price Changes

• Global producer inventories fell by two days of supply to 39 days in March 2020 (36 days for BSK and 43 days for BHK). This is 15 days lower than March 2019. (PPPC, May 2020)
• Europe and China port inventory has reduced: China Port Inventory fallen to 1.3m ton (Peak 2.3m, Q3 2019), Europe Port Inventory fallen to 1.5m ton (Peak 2.0m, Q3 2019). [Europulp and Internal, May 2020]
• In all, BHKP supply has being reduced by ~ -550k ton (till date) due to COVID-19 impact. (Internal, May 2020)

Paper Capacity & Price Changes

• In India, most major pulp & paper producers have resumed production, however, most mills are operating at only 40-50% operating rate. (RISI, May 2020)
• Suzano announced extended downtime to 2 months. Navigator also extended UWF production curtailments until end of June. In all, UWF supply has been reduced by ~ -900k ton (till date) due to COVID-19 impact. (RISI & Internal, May 2020)