Market News of Note

SCA will increase the price on NBSK pulp (Northern Bleached Softwood Kraft) in Europe. The new price will be 1,200 USD, effective as from now.

Demand for forest raw materials from family forestry remains. To meet the need for winter, from both the timber market and Södra's industries, Södra is raising the prices for spruce and pine timber from 9 October.

Demand for forest raw materials continues during the autumn.

In an effort to address prevalent supply chain uncertainties and to maintain the commercial viability of its Graphic Paper business, Sappi Europe will keep prices for its Woodfree Coated Paper grades stable at today's level for the remainder of 2023.

Essity has appointed Sandra Åberg as Vice President and Head of Investor Relations, effective September 1, 2023. Sandra is currently Director Investor Relations at Essity. The current Head of Investor Relations, Johan Karlsson, will assume the role of Vice President Business Control at Essity.

Successful financing transaction creates greater financial flexibility and valuable optionality supporting the execution of RYAM's strategic priorities and shareholder value creation.

Rottneros has entered into a new loan agreement with Danske Bank whereby its existing long-term facilities will be refinanced. The new facilities amount to a total of 250 million SEK divided into a term loan facility of 100 million SEK and a revolving loan facility of up to 150 million SEK.

This decline is mainly due to weak sales volumes in its division MM Board & Paper, which the Company had already cautioned about earlier this year.

Destocking in the various product value chains has continued to hold back delivery volumes in most UPM's businesses, resulting in slower recovery of volumes than earlier expected. In addition, chemical pulp prices have fallen faster than expected, towards estimated bottom-of-the-cycle price levels. Finally, as indicated earlier, UPM has high maintenance activity during Q2 2023.

Suzano SA, the biggest producer of hardwood pulp, is considering selling its products to China priced in yuan, adding to signs that the dollar is losing its dominance in commodity markets.

Due to materially lower earnings forecasts for the full year results 2023, Stora Enso's new guidance is that the full-year 2023 operational EBIT is expected to be significantly lower than for the full-year 2022 (Euro 1,891 million).

Ilim Group increases its deliveries to the southwestern regions of China, which has been its prioritized area. By 2025, the share of Ilim Group's board deliveries to the southwest of the People's Republic of China will increase three-fold from 5% to 16%, to another 100 thousand tons of the finished products.

Sylvamo was selected to replace Resolute Forest Products (RFP) on the PM40 when Resolute's common stock ceased to be listed on the the New York Stock Exchange and the Toronto Stock Exchange after the Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, on April 1 announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc.

Canfor's plan to permanently shut down the pulp line at Prince George Pulp and Paper by March and potentially put as many as 300 mill workers out of work is not the only grim reality facing the north central B.C. wood industry.

They say they really don't want to, but they have to.

This temporary reduction in output is expected to be mostly concentrated outside of Interfor's US South operating region.

Due to higher-than-expected major maintenance related costs at the company's Lewiston, Idaho mill, and other operational issues, the company now expects adjusted EBITDA for the fourth quarter of 2022 to be in the range of $28M-$34M and full year 2022 adjusted EBITDA of $227M-$233M.

Western Forest Products Inc. says it will temporarily reduce its lumber production levels for the rest of the year.

Canfor Corporation is announcing a temporary reduction in Canadian production due to very weak market conditions. The production will be reduced through curtailments at all solid wood facilities in B.C. and Alberta.

Prices will increase 15% or more for shipments on and after the 1st of December 2022.

Interfor announced plans to reduce its lumber production output in the fourth quarter of 2022 by approximately 200 million board feet, or 17% of quarterly capacity, as current economic conditions and market uncertainty have led to reduced lumber demand.

By the end of this year, after Paper Excellence indefinitely shuts down its paper mill in Crofton, B.C. will have lost 58% of its paper production capacity and 13% of its pulp mill capacity, according to David Elstone of the Spar Tree Group.

Canfor Pulp Products Inc. is announcing a temporary curtailment of its Intercontinental Pulp Mill due to the lack of available economic fibre.

After the increase, the basic price for prime coniferous pulpwood is SEK 465 per solid cubic meter and prime birch and aspen pulpwood SEK 505.

The current geopolitical situation in Europe continues to upset the unprecedented inflationary trends further, with severe impact onto operating costs--including utilities and labour costs--through the entire supply chain.