Sept 2021

Pulp Capacity & Price Changes

• Bracell postpones startup of new pulp line in Brazil until early Sept. The project includes two swing pulp lines with a combined capacity of up to 2.8 million tonnes/yr of bleached kraft pulp or 1.5 million tonnes/yr of dissolving pulp (DP). (RISI, Aug 2021)
• Arauco sets BEK pulp prices in China at $655/tonne in Sept., a $15/tonne drop (RISI, Aug 2021)
• Stocks of woodpulp at European ports fell in July, dipping 3.6% month on month. Inventories stood at 1,042,147 tonnes, down from 1,081,603 tonnes in June, according to the latest statistics from Europulp.
• Bracell starts up first of two new flexible dissolving pulp lines in Brazil. The project includes two swing pulp lines with a combined capacity of up to 2.8 million tonnes/yr of bleached kraft pulp or 1.5 million tonnes/yr of dissolving pulp (DP). According to the company, after the startup of the first line, the second should begin production in two weeks.
• Chilean pulp exports drop 9.8% in 1H21 to 2.2M tonnes. (Chile’s Forestry Institute)
• Brazilian pulp exports drop 0.8% in 1H21; output up 8.5% (Brazilian Tree Industry Assn)

Paper Capacity & Price Changes

• APRIL announced a $50/tonne price hike for its uncoated woodfree paper on 25 Aug, range in Africa and the Middle East, effective on deliveries immediately. (RISI, Aug 2021)
• Navigator to increase paper prices by 6% in Europe from Sept 27. (RISI, Aug 2021)
• UFS supply may tighten further with Sept./Oct. downtime, Jackson PM (365k t/y)shift to containerboard: IP, Domtar, and PCA are taking scheduled maintenance downtime, and also while seasonal and post-pandemic demand is picking up; N.A UFS mill OR hit 93% in July compared with 74% in July of 2020, according to PPPC (RISI, Aug 2021)
• Graphic paper prices in Brazil remain stable as market expects increases in the fourth quarter. According to PPI Latin America, domestic offset prices remained at real 4,100-4,500/tonne in September, up 24.6% over a year ago. Meanwhile, imported UWF is traded at the $900-1,100/tonne range in September, a 39.9% annual increase.
• Suzano sets $50/tonne price increase for UWF, CWF and boxboard exports, effective October. This is the third price increase slated by Suzano this year impacting UWF exports.