by Sean Ungerer | Oct 27, 2021 | Forestry and Paper
Key YTD moves: Cotton +40%; Polyester +35%; HW DWP +29%; China-origin DWP +17%; medium-grade VSF +26%; high-end VSF +25% and Lyocell -8%. Cotton is currently trading at a 48% premium to VSF (YTD average: 23%) and at a 167% premium to polyester (YTD average: 137%). The...
by Sean Ungerer | Oct 22, 2021 | Forestry and Paper
Europe pulp prices stable, while US and China prices weaken: China prices continue to weaken further on the back of weaker futures and the ongoing government-mandated mill downtime. NOREXECO pulp futures for CY Q4 21E imply a 6-7% decline in Europe vs. a 0-1% decline...
by Sean Ungerer | Oct 21, 2021 | Forestry and Paper
Huhtamäki reported Q3 21A results this morning: Sales increased by 6% y/y (+2% q/q), while EBITDA declined by 10% y/y (-6% q/q). This resulted in EBITDA margin of 12% (-217 bps y/y and -100bps q/q). Encouragingly, the YTD margin is stable, highlighting the company’s...
by Sean Ungerer | Oct 20, 2021 | Forestry and Paper
Stora Enso reported strong Q3 21A results this morning: Sales up 24% y/y (-1% q/q), with EBITDA up 73% y/y and up 9% q/q. This resulted in robust margin expansion to 22.1% (+620 bps y/y and +190bps q/q) and ROCE over 13%. Net debt/EBITDA continues to improve reaching...
by Sean Ungerer | Oct 19, 2021 | Forestry and Paper
Key YTD moves: Cotton +50%; Polyester +40%; HW DWP +30%*; China-origin DWP +17%; medium-grade VSF +24%*; high-end VSF +21%* and Lyocell -8%. VSF prices jumps 10% w/w, with potentially more on the cards: Market activity has improved seeing a rebound in VSF prices as...
by Sean Ungerer | Oct 15, 2021 | Forestry and Paper
China pulp prices fall further: NOREXECO pulp futures for CY Q4 21E imply a 6-7% decline in Europe vs. a 2% decline in China. European CWF margins remain in the red, despite prices up 1.4% w/w: After factoring in a 30% discount to list pulp prices, the CWF/HW spread...
