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)

Apr 2020

Pulp Capacity & Price Changes

• Latin American producers, including Suzano and Eldorado, announced price hike of +US$30/tonne for hardwood pulp in Europe, North America and Asia regions. [RISI, Apr 2020]
• Hardwood pulp price hike is supported by ongoing tissue-driven demand and also, tissue producer(s) are using more kraft pulp than recycled fiber/paper. (Internal, April 2020)
• Pulp inventory beginning to normalise at major ports, where both Europe and China port inventory are reduced to 1.3 million ton level. [Europulp and Internal, Apr 2020]

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]

Feb 2020

Pulp Capacity & Price Changes

• OKI mill extended its production curtailment until the end of Mar’ 20, due to shortage of clean water, reducing ~212kt of pulp supply to market. [RISI, Feb 2020]
• Suzano announced that 1.1 million ton of inventory has being cleared in 2nd half of 2019, where its inventory level in 2019 is lower than 2018. Also, pulp outlook remain positive despite COVID-19 outbreak, as this result of increase tissue consumption in China (and globally). [RISI, Feb 2020]

Jan 2020

Pulp capacity & price changes

• APP announced curtail production in OKI mill (until end Feb) due to water supply shortage. [RISI, Jan 2020]