May 2021

Pulp Capacity & Price Changes

• Suzano announces new 2.3 million tonnes/yr BEK project (‘Cerrado Project’) in Mato Grosso dol Sul state, Brazil, with a target startup in the first quarter of 2024. (RISI, May 2021)
• Domtar announced $100 hike for its NBSK and SBSK to North American customers in the first week of May, reversing its initial decision to leave prices flat. Its 634 thousand tonnes/yr fluff and SBSK mill remains in force majeure, ten weeks after the Arctic Blast forced the company to idle production at the mill. (RISI, May 2021)
• Brazil BEK exports marginally up 0.7% MoM in April (+22% YoY) to 1.39 million tonnes. (Comex Stat, May 2021)
• Suzano, Eldorado and Klabin announced to maintain $780/t as June price for BEKP in China. In Europe and North America, due to robust demand, they have announced new list prices of $1140/t (+50) and $1380/t (+60) for June intake respectively. (RISI, May 2021)
• Södra Cell announced new BSKP list price of $1380/t (+60) for June intake in Europe. (RISI, May 2021)
• Stocks of woodpulp at European ports declined 19% MoM to 1.12 million tonnes in Apr’21, down from 1.388 million tonnes in Mar’21. This also represents a 24.5% drop from the level recorded a year ago in Apr’20. (Europulp & Internal, May 2021)
• Paper Excellence aims to open 340ktpa NBSK Prince Albert pulp mill in Saskatchewan in 2023. (RISI, May 2021)

Paper Capacity & Price Changes

• Paper Excellence (PE) signs deal to buy Domtar Corp. for US$3B; PE will acquire all shares of Domtar stock for $55.50 per share. Domtar has 11 mills in the US and Canada with production capacity of 2.4 million tonnes/yr of UFS paper and 2.3 million tonnes/yr of pulp. Following acquisition, PE intends to continue the operations of Domtar as stand-alone entity. (RISI, May 2021)
• Resolute sets $60/ton increase on its uncoated freesheet (UFS) paper grades, effective with shipments on or after June 15. (RISI, May. 2021)
• IP Brazil reported positive sales results in 2021 Q1. UWF Sales volumes grew 5.8%, to 254,000 tons, the first positive result since the COVID-19 pandemic hit Brazil. IP also highlighted that earnings improved due to higher average sales prices and lower operating costs. (RISI, May 2021)
• PCA sent a letter to customers on May 17 saying its office, printing, and converting papers prices would increase by $4/cwt ($80/ton) in the US and Canada, effective with shipments June 21. (RISI, May 2021)
• Domtar announced on May 21 that its office, printing, publishing, converting, and specialty paper products would increase 6-9% in the US and Canada on July 1. (RISI, May 2021)
• IP would raise prices by 6-8% on its UFS rolls and sheets effective July 1. IP sent a separate announcement saying its prices for envelope and information paper grades would increase by $3/ctw ($60/ton) from July 1. (RISI, May 2021)
• Suzano informed clients in Canada and the USA of a 10% price hike for its uncoated freesheet (UFS) shipments starting Jun 1. (RISI, May 2021)