• Logistics still being impacted: Second wave of COVID-19 and the approach of the Chinese Lunar New Year impacting logistics, coupled with fewer vehicles available in Zinjiang.
  • VSF operating rate improves slightly to 83%: Plants that cut run rates generally resumed normal operation. VSF inventory days drops further to 9.
  • DWP price jumps 8% w/w to USD 860/t: DWP price was buoyed by tighter supply last week. Subsequently, trades were concluded at USD 895/t. Domestic producer, Sun Paper restarted its DWP unit in Zoucheng and Hunan Juntai and producing paper pulp currently but plan to switch back to DWP in February. In the ST, HW DWP availability is likely to remain tight. We caution that current DWP price likely to incentivise swing producers to convert from paper pulp but will take some time.

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