Research

The content listed is not for investment, financial, accounting or tax advice and is provided for informational purposes only.

Read more

Forestry & Paper: Textile Fibre Insights

Key message: DP price -1% m/m & +19% y/y in August, with the July-August average of USD 1,204/t up 8% q/q. Cotton down 6% w/w, while VSF is flat. Cotton is now trading at a 1% discount to VSF. Spot DP is USD 1,125/t. VSF inventory days tick up to 27.5, while the average op. rate declines further to a new low of 52%. VSF theoretical profit improves but still in the red at -USD 159/t (VSF/DWP spread -3% YTD).

Forestry & Paper: Industry Insights

Key message: Pulp, Graphic Paper & Containerboard prices stable. ICC Dutch TTF Gas Futures have moderated to EUR 243/MWH, from a high of EUR 346/MWH on 26 August. A EUR 10/MWH increase in natural gas prices would raise average testliner manufacturing costs by EUR10-20/t and for kraftliner by EUR 5-10/t.