by Sean Ungerer | Nov 9, 2021 | Forestry and Paper
Key YTD moves: Cotton +41%; Polyester +23%; HW DWP +29%; China-origin DWP +17%; medium-grade VSF +26%; high-end VSF +27% and Lyocell -8%. Cotton is currently trading at a 48% premium to VSF (YTD average: 24%) and at a 195% premium to polyester (YTD average: 140%). VSF...
by Sean Ungerer | Nov 5, 2021 | Forestry and Paper
Further pressure on pulp prices in China: China hardwood declined by 3% w/w, while softwood dropped 5%. Currently, the spread between pulp prices in Europe and China is c. EUR 200/t, which is not sustainable. NOREXECO pulp futures for Q1 21E imply a 13-17% decline in...
by Sean Ungerer | Nov 3, 2021 | Forestry and Paper
Lenzing reported Q3 21A results this morning: Nine-months ending 30 September paints a pretty picture but Q3 earnings came under pressure. Q3 21A revenue increased by 44% y/y and by 2% q/q. EBIT increased by 956% y/y but declined by 53% q/q. The EBIT margin of 7.1%...
by Sean Ungerer | Nov 3, 2021 | Forestry and Paper
Smurfit Kappa released a strong Q3 21A trading update this morning: Q3 21A revenue increased by 22% y/y, while EBITDA increased by 16% y/y and by 16% q/q to EUR 454mn. Accordingly, the Q3 21A EBITDA margin was 17.4%. Strong corrugated growth for the nine months ended...
by Sean Ungerer | Oct 29, 2021 | Forestry and Paper
Pulp prices broadly stable: However, the SHFE BSK futures fell again this week, undermining arbitrage buying (November: USD 709/t; December: USD 700/t). Stocks at SHFE designated warehouses are increasing, with 335kt of pulp on warrant in SHFE warehouses and 38kt at...
by Sean Ungerer | Oct 28, 2021 | Forestry and Paper
DS Smith released a positive H1 22E trading update this morning: Structural demand trends and momentum persisted during May-October 2021. With “very” positive box volume growth, coupled with higher paper and box pricing, this has been more than enough to offset...
