September 2020

Pulp Capacity & Price Changes

• Sentiment in global pulp market has improved as we exit the seasonally slower summer months; the prospect of higher than normal maintenance shuts during Q3 and the low market prices have helped to support order books and prevent erosion in Europe and Asia. Weakening US dollar has also improved affordability in key markets such as China and Europe (Internal, Sep 2020)
• Major ports see drop in inventory - European ports (wood pulp) inventories level see drop of -4.6% compared against previous month (1.59 million tonnes in July ‘20). Similarly, China ports (BHKP) a drop of -4% against previous month (1.32 million tonnes in Aug ‘20). [Europulp & RISI, Sep 2020]

Paper Capacity & Price Changes

• By Q3 2021, UWF paper supply is expected to drop -3.5 million tonnes by 2021 – this implies ~-6% of total UWF paper market supply will be gone (by then) due to closure and conversion. Till date, 2.4 million tonnes has already removed from market (Internal + official company announcement, Sep 2020)