January 15 World Pulp Monthly Analysis and Forecasts of the International Pulp Market RISI European Conference Join us in Amsterwm from March 9-11! www.risi.com/euroconf Summary BSK and BHK prices in January again moved in opposite directions, which, although unusual, was expected in light of the uncommonly large price gap between the two grades in 2014. The value of the US dollar relative to the euro and other major pulp-producing currencies has posted yet another increase over the past month. Our price forecast has been revised downward from last month based on a new exchange rate projection, but the overall shape of our forecast curve has not changed. We still see the possibility of some additional upward movement coming for BHK in the next several months, followed by a correction in the second quarter, with BSK continuing to move down through mid-year. However, we have lowered our estimates of the low points that these markets will reach by mid-2015. This is based on recent exchange rate developments, which are moving faster than our currency projections had anticipated. Recent Developments RISI has updated its currency forecasts to show an even stronger dollar, so we have revised our price forecast downward again this month. This is better seen as an episode of "dollar strength" rather than "euro weakness," as most currencies are weakening relative to the dollar. The value of the euro dropped again in January and went as low as $1.12 in the early days of February, while the Canadian dollar dropped to less than $0.80. RISI's new forecast, finalized in January, has the euro dropping to as low as $1.05 in the third quarter of this year, with the Canadian dollar bottoming out in the same time period at $0.77. Cash production costs have already shifted downward substantially for most pulp producers and the forecast shows substantial further declines over the next two quarters. Pulp demand is not expected to be strong this year, so prices will fall until they reach some sort of cost support. With cost curves shifting downward, that support will be found at lower price levels than was expected. In short, the weak demand environment for pulp means that the exchange rate developments will translate rather directly to a lower bottom in prices. If currency developments do not proceed as we expect, our price forecast will be too low. The losers in this development are pulp producers in China and the USA—their costs are not affected by the strength of the dollar, so lower prices will result in a painful squeeze in cash operating margins for these producers. (The Chinese currency moves very closely with the US dollar and China's pulp mills now crowd the upper end of the BHK cost curve.) The risk of To subscribe visit www.risi.com/wpm Or contact client service at Email: [email protected] Call: in North America +1.866.271.8525 Outside the US & Canada +32.2.536.0748 Abbreviations: BSK BHK UKP MEC SEM SIT BIT UIT Bleached Softwood Kraft Pulp Bleached Hardwood Kraft Pulp Unbleached Kraft Pulp Mechanical Pulp Semichemical Pulp Sulfite Pulp Bleached Sulfite Unbleached Sulfite DP PAB P&W CNT FSC MPB OFE BDMT Dissolving Pulp Paper and Paperboard Printing & Writing Containerboard Forest Stewardship Council Mountain Pine Beetle Other Far East (Asia excluding China and Japan) Bone Dry Metric Ton World Pulp Monthly - January 2015 pulp mill closure has shifted from Europe to the United States and China. Our new forecast is consistent with pulp mill downtime and perhaps closures occurring in both of these countries by the end of third quarter. If the Chinese decide to allow the renminbi to weaken relative to the dollar—which could make sense to them, given how strong it is now relative to most other currencies—the risk of closure will be lessened there and raised in the United States. If exchange rates follow the path foreseen in RISI's forecast, pulp mills in the USA that were stressed at the bottom of the market in 2014 are likely to be even more stressed over the next two quarters. Chinese paper and board markets remain weak. There is little change to report in the paper markets in China; all of the major end uses for market pulp remain oversupplied. Producers of woodfree printing & writing paper, virgin cartonboard and tissue are all suffering from capacity overexpansion and weak consumption growth due in part to the ongoing slowdown in the Chinese economy. Paper prices and operating margins remain low, but activity is expected to pick up after the Spring Festival. BHK orders in China weaker in January, prices up. Overall World 20 BHK shipments were quite strong in December, as expected. Shipments came in at 67,600 tonnes per day, higher than in either October or November. Part of this strength was due to China, but demand was also strong in North America, Europe and Other Asia/ Africa. However, our seasonal adjustment model indicates that shipments actually fell in December on a seasonally adjusted basis. It is a technical point, but we are a little less confident in the seasonal adjustment factor for December than for other months. Producer BHK inventories dropped substantially in December on an unadjusted basis, but rose on a seasonallyadjusted basis. Again, the same issues with respect to seasonal adjustment may be at work here as well, so we will be watching the January data closely for a better reading. In January, Chinese BHK demand was anecdotally somewhat less strong than in December as buyers put up some resistance to higher prices. We estimate that major overseas suppliers of BEK as well as local suppliers to China were able to raise prices by at least another $10/tonne in January, despite the fact that BSK prices were falling at the same time. BHK appears to still be in relatively short supply in China. Figure 1 China Bleached Kraft Spot Price Comparison US Dollars and RMB per Tonne 7,000 $950 7,000 6,700 $900 6,700 6,400 $850 6,400 6,100 $800 6,100 $800 5,800 $750 5,800 $750 5,500 $700 5,500 $700 5,200 $650 5,200 $650 4,900 $600 4,900 $600 $550 4,600 $550 $500 4,300 $500 $450 4,000 $450 4,600 NBSK Local RMB NBSK Local US$ ex VAT NBSK Import Price Ex 2% Disc US$ 4,300 -14 Oct-14 -14 Jun-14 -14 Feb-14 -13 Oct-13 -13 Jun-13 -13 Feb-13 -12 Oct-12 -12 Jun-12 -12 Feb-12 2RISI -11 Oct-11 Jun-11 -11 -14 Oct-14 -14 Jun-14 -14 Feb-14 -13 Oct-13 -13 Jun-13 -13 Feb-13 -12 Oct-12 -12 Jun-12 -12 Feb-12 -11 Oct-11 Jun-11 -11 4,000 BEK Local Price RMB BEK Local US$ ex VAT BEK Import Price Ex 5% Disc US$ $950 $900 $850 World Pulp Monthly - January 2015 Figure 2 BHK and BSK World 20 Producer Inventories Days of Supply 65 60 BHK Avg BHK (37.6) 55 BSK Avg BSK (28.7) 50 45 40 35 30 25 20 15 Source: PPPC, RISI 04 05 06 07 08 09 10 11 12 13 14 Figure 3 Bleached Kraft Pulp Imports into China Thousand Tonnes/Month, Not Seasonally Adjusted 700 BSK Imports 700 600 600 500 500 400 400 300 300 200 200 100 100 0 1/06 1/07 1/08 1/09 1/10 1/11 1/12 1/13 1/14 0 BHK Imports 1/06 1/07 1/08 1/09 1/10 1/11 1/12 1/13 1/14 RISI3 World Pulp Monthly - January 2015 Figure 4 Western Europe Monthly Fine Paper Deliveries Thousand Tonnes/Day, Three-Month Moving Average 30 Uncoated Fine Paper, Euro Graph Deliveries PER DAY 3MMA Coated Fine Paper, Euro Graph Deliveries PER DAY 3MMA 28 26 24 22 20 18 16 1/03 1/04 1/05 1/06 1/07 1/08 1/09 1/10 1/11 1/12 1/13 1/14 Figure 5 Western Europe Monthly Mechanical Paper Deliveries Thousand Tonnes/Day, Three-Month Moving Average 30 28 26 24 22 20 18 16 14 Uncoated Mechanical Paper, Euro Graph Deliveries PER DAY 3MMA 12 10 Coated Mechanical Paper, Euro Graph Deliveries PER DAY 3MMA 1/03 1/04 1/05 1/06 1/07 1/08 4RISI 1/09 1/10 1/11 1/12 1/13 1/14 World Pulp Monthly - January 2015 In North America, BEK contract prices rose by $10/tonne. Prices for other BHK grades in the region were unchanged for the month. BEK is now selling at a $15/tonne premium to other hardwoods in North America, which is in line with what we have been expecting. The producer inventory situation is still favoring producers, so we would expect a further rise in prices around the world in February and March. Based on seasonal patterns in the European printing & writing sector, market BHK consumption should pick up substantially starting in February through April, so producers should have a tailwind in their attempts to raise prices over the coming months. The spring season in the Northern Hemisphere is typically the peak period for BHK consumption and demand in Europe. European demand for BHK will be picking up as China's inventory adjustment (and stronger purchasing volumes) winds down. The Chinese Spring Festival starts in mid-February this year, and there is a big question as to whether Chinese demand will continue to be strong after market participants return from the holiday. It would not be surprising to see Chinese buyers pulling back somewhat as European purchases, and BHK prices, move higher starting in a month or two. The startup of CMPC's new BHK line in Brazil, coming in the second quarter, is likely to end the felt scarcity of BEK before mid-year. BSK pricing again weaker in January. Import prices for NBSK (Canadian and Nordic) into China dropped by as much as $20/tonne in December, while radiata and Russian softwood fell by even more. The collapse in the value of the ruble over the past several months has given Russian tonnage a huge cost advantage compared to pulp made anywhere else, so the incentive here is to keep the tonnage moving even if this requires price concessions in dollars. Chinese BSK demand has not been exactly weak over the past several months—imports have been about average compared to early 2014—but buyers have agreed to deals only after getting price reductions. Table A Pulp Demand Indicators 2014 Real GDP (% Change) 3.2 World China 7.4 W. Europe 0.8 United States 2.4 Currencies vs. US$ * 1.25 US$ per Euro US$ Per Canadian Dollar 0.95 Chinese RMB per US$ 6.09 Brazilian Real per US$ 2.28 Production of P&W Paper ** (% Change) -1.2 World China -0.6 Western Europe -2.8 North America -4.9 Production of Tissue Paper *** (% Change) 3.6 World Production of Boxboard *** (% Change) 10.5 China 2015 2016 3.5 3.8 6.9 6.7 0.9 1.4 3.4 3.0 1.07 1.11 0.88 0.76 6.15 6.13 2.55 2.71 0.2 0.1 1.9 2.0 -1.6 -1.7 -2.8 -2.2 3.9 3.9 9.3 6.0 * Fourth-quarter average ** Source: RISI graphic paper forecast *** Source: RISI tissue paper forecast RISI5 World Pulp Monthly - January 2015 A period of seasonal strength on the printing & writing paper side will begin again in February/March, but this is likely to boost BHK demand more than BSK demand. The World 20 report for December showed that the BSK market weakened substantially in the last month of the year. Shipments were weak (both adjusted and unadjusted for seasonality), the shipment/capacity ratio fell to 91%, and days of supply rose to 31 (both adjusted and unadjusted for seasonality). A level of 31 days is well above the "balanced" level for the BSK market. The rise in producer inventories in December certainly contributed to the decline in prices in January. In our view this marks the beginning of a broad decline in BSK prices through the middle of this year. Elevated BSK prices, along with much weaker currencies for all major producers except those in the United States, mean that operating margins are quite healthy for all major producing regions. There is little if any cost-side support for prices at current levels. Prices could receive some support in the March through May period, on both the demand and supply sides of the market. There will be a significant round of maintenance downtime in the time period, and P&W paper production will be seeing a seasonal uptick in Europe, China and the United States. Our view is that these factors will slow but not reverse the downward trend in prices that we believe is now in place. Drivers of Pulp Demand The World Economy US GDP data showed the economy grew at an annualized 2.6% in the fourth quarter of 2014. Although down significantly from the third quarter's 5% growth rate, this report was nevertheless mostly positive. Consumption, the largest and most important part of the US economy, grew at a 4.3% annualized rate, the fastest growth since the first quarter of 2006. Monthly indicators were also mostly positive, with employment growing by 252,000 jobs in December. For the full year, job growth was the best since 1999. Spending took a bit of a step backward in December, with retail sales falling by 0.9% month-over-month and the previous month's strong gains revised downward. Industrial production was also lower in December, slipping 0.1% month-over-month, but this was entirely due to a huge drop in utilities output; manufacturing, meanwhile, remained strong. Oil continued its decline, falling to as low as $43/barrel, although there are some signs that prices may be approaching a bottom. We believe that increasing employment and lower gas prices will support sustainable growth of around 3% per quarter on an annualized basis going forward. The last few weeks have seen a number of actions by central banks around the world, with many of these moves coming as a surprise to the market. Canada, Denmark and India lowered interest rates, Switzerland removed its currency peg causing the Swiss franc to appreciate by almost 20% in a day, and Brazil raised interest rates. Some of these moves were in response to or in anticipation of the most consequential central bank action: the long-awaited and much debated quantitative easing (QE) by the European Central Bank (ECB). After finally overcoming, or ignoring, objections from Germany, the ECB has followed the central banks of the USA, the UK and Japan into this unconventional monetary policy. The nature of the QE program that the ECB is implementing is a bit more complex than those put into action by the Federal Reserve or the Bank of Japan, as one would expect given that there are bonds of 19 sovereigns that need to be purchased. As laid out by the ECB, the program would entail purchases of €60 billion per month (€50 billion additional new purchases) of sovereign bonds and bonds of European institutions like the European Investment Bank from March of this year until September 2016. We think that this QE program will have some marginally positive effects, but overall, they will not be dramatic. The greatest effect of the QE announcement so far has been on the currency. The euro started depreciating last summer on the expectation of policy easing by the ECB, but its decline has accelerated. After the announcement of quantitative easing, the euro fell from 1.17 USD/EUR to 1.11 USD/EUR before bouncing slightly. Devaluing the euro has certainly been a goal of the ECB, and it is likely to depreciate further. This should help the eurozone 6RISI World Pulp Monthly - January 2015 economy in two ways: making European goods more competitive around the world and raising the cost of imported goods, which should help with the disinflation problem. China released its GDP numbers for the fourth quarter of 2014 as well as the full year, and despite numerous predictions that the Chinese economy is crashing, it actually seems to be coming in for a soft landing. The economy grew by 7.3% year-over-year in the fourth quarter and 7.4% for full-year 2014. A complete breakdown is not yet available, but with average household income growing by 8%, faster than the overall economy, it looks like consumption contributed more than half of total GDP growth. Additionally, exports contributed significantly to GDP, with the country recording its largest ever trade surplus. Investment's contribution to GDP declined for the year, in line with the government's stated goals. While it has still not been announced, there are rumors that Beijing will lower the growth target for 2015 from 7.5% to 7.0%. The monthly data showed some stabilization in industrial production, with year-over-year growth rising to 7.9% from 7.2% the prior month. Despite the directives of the People's Bank of China (PBoC) to increase lending, new bank loans in December came in much weaker than expected at RMB 697 billion. With the decreased bank lending, companies turned to the shadow banking segment, with the percentage of loans coming from these less regulated sources at the highest percentage of total loans since January 2014. While there is continuing weakness in investment and industrial production, trade is providing much needed support for China's economy. Exports grew 9.7% year-over-year in December, while imports declined by 2.4%. The Canadian dollar weakened further in January, falling to US$0.803, and declining oil prices should continue to put pressure on the loonie. In general, we see ongoing US dollar strength versus most currencies. Outlook for Pulp Supply On the capacity front, the situation has been more stable and transparent than was the case in 2013 into mid2014. The following developments are on our radar. • Since last month's World Pulp Monthly was published, the Old Town BHK mill (200,000 tonnes per year) restarted production after being down since August. The new owner of the operation, Expera Paper Solutions, will use the pulp at its other mills, and production could swing between BHK and BSK. according to reports the mill has recently been producing market BHK. • Mondi has officially opened its 100,000 tonne per year pulp dryer at its Syktyvkar mill in Russia. The €30 million investment aims to improve the efficiency of the pulp line and increase excess pulp going into the open market. • Paper Excellence has postponed the reopening of its Chetwynd mill that was originally set for July 2014. The company purchased the facility from Tembec in early 2014. The BCTMP mill was idled by Tembec in September 2012 due to poor market conditions for high-yield pulp. The facility can produce 240,000 tonnes per year of BCTMP. • Portucel's Cacia mill will expand its BHK capacity from 285,000 tonnes to 353,000 tonnes by mid-2015. The market pulp mill will receive government assistance in the form of tax and financial incentives to see the project through. • CMPC is scheduled to have a new BEK line up and running in May of 2015 at its Guaíba mill in Rio Grande do Sul State, adding an additional 1.3 million tonnes per year of BEK to the existing 400,000 tonne per year line. The project is well under way and in the process of optimizing logistics to access wood fiber and export the additional BEK tonnage. • Double A has not yet restarted the pulp line at the Alizay mill, which it acquired in a separate purchase from the paper line. We initially estimate it will be capable of drying as much as 130,000 tonnes of BHK for the market, and the company reports the line will be operational by the first half of 2015. RISI7 World Pulp Monthly - January 2015 • UPM will be expanding NBSK capacity at its Kymi mill as a part of its broader company-wide goal to raise pulping capacity by 10% over the next three years. The capacity expansion will total 170,000 tonnes per year of market pulp, split evenly between birch and BSK pulp. We expect this project to be complete in the latter half of 2015. • Domtar has announced a conversion of its largest UFS paper machine at the company's Ashdown Mill located in Arkansas in the third quarter of 2016 to a pulp line with capacity of up to 516,000 tonnes per year. • Holmen's Iggesund Paperboard will invest US$70.4 million between its Workington mill in the UK and its Iggesund mill in Sweden. The investment will include debottlenecking the Iggesund mill to increase pulp production capacity by 50,000 tonnes per year. The investment is set to be completed by mid-2016. Table B Major Market Pulp Capacity Changes (Q1 2013 - Q2 2015) Thousand Tonnes Company Location Country Grade (Type) Jari Celulose Domtar (Kamloops) Schweighofer Ilim Pulp Sappi (Cloquet) Buckeye Technologies (Foley) Ilim Pulp Indah Kiat Solombalsky An Hoa Pulp & Paper Rayonier (Jesup) Mayr-Melnhof SodraCell Metsä Fibre Oy Sappi Iguacu UPM Heinzel Holding Phoenix Pulp and Paper Monte Dourado British Columbia Hallein Koryazhma Minnesota Florida Irkustk Perawang Arkhangelsk Tuyen Quang Georgia Follafoss Tofte Joutseno Ngodwana Pirai do Sul Fray Bentos Pols Namphong Brazil Canada Austria Russia USA USA Russia Indonesia Russia Vietnam USA Norway Norway Finland S. Africa Brazil Uruguay Austria Thailand BHK (Closure) BSK (Line Closure) BIT (Conversion to DP) BSK/BHK (Integration) BHK (Conversion to DP) BSK (Conversion to DP) BSK (New Line) BHK (Integration) UKP (Closure) BHK (Integration) BSK (Conversion to DP) MEC (Restart) BHK/BSK (Closure) BSK (Upgrade) BSK/BHK (Conversion to DP) UKP (Integration) BHK (Debottlneck) BSK (Integration) BHK (Conversion to DP) Suzano Oji Imperatriz Yonago Brazil Japan BHK (New Mill) BHK (Conversion to DP) Eldorado Três Lagoas Brazil BHK (Debottleneck) Montes del Plata Oji Punta Pereira Nantong Uruguay China BHK (New Mill) BHK (New Line) Lontar Papyrus Jambi Indonesia Paper Excellence British Columbia Hongyuan Fangchenggang CMPC Portucel Double A Guaiba Portugal Alizay Capacity Mkt Year Quarter -430 2013 1 -120 2013 1 -160 2013 1 -200 2013 1 -250 2013 2 -55 2013 2 500 2013 2 -295 2013 2 -230 2013 -80 2013 -260 2013 3 120 2013 3 -405 2013 3 60 2013 3 -150 2013 3 -75 2013 4 100 2013 4 -55 2013 4 -105 2013 4 1,500 2014 1 -100 2014 1 200 2014 1 1,300 2014 2 240 2014 2 BHK (Integration) -55 2014 2 Canada MEC (Restart) 240 2014 3 China BHK/Bagasse (New Mill) 100 2015 1,300 2015 Brazil Europe France BHK (New Line) BHK (Expansion) BHK (Restart) 8RISI 2 70 2015 2 130 2015 2 World Pulp Monthly - January 2015 • Sodra has lined up a list of investments to be made at its Varo mill in Sweden, which should be completed in late 2016. The investments will increase the BSK capacity from the current 425,000 tonnes per year to 700,000 tonnes per year. There will also be work done at its Morrum mill, which looks to get an increase in BSK production from 380,000 tonnes per year to 425,000 tonnes per year. • The Woodland pulp mill in eastern Maine, owned by International Grand Investment Corp, will reportedly be installing two 66,000 tonne per year tissue machines. The company states that about a quarter of the pulp mill's 400,000 tonnes of NBHK capacity will be integrated with the two new lines. The mill may swing some of its pulping capacity to NBSK to furnish the tissue lines as well. The first of the two PMs is slated to come online in the last quarter of 2015 and the second by the beginning of 2016. Outlook for Pulp Prices We have made substantial revisions to our price forecast for the second half of this year, based on exchange rate developments outlined above. We noted these issues last month and said that we were being cautious and waiting to see another month's worth of exchange rate developments before making more substantial revisions. Since then, a new RISI base-case macroeconomic scenario has been finalized, which indicated a substantially stronger dollar scenario than had been the case in earlier forecasts. Our price forecast is now in line with RISI's new exchange rate scenario. Our view has been that both BSK and BHK prices would bottom out in the third quarter of this year. This has not changed, but the levels at which prices reach bottom will be substantially lower based on the new exchange rate forecast. We anticipate relatively weak demand in the second quarter and into the third quarter. Prices are likely to trend downward until they reach some sort of cost support. For BSK, that is likely to happen in the upper $500s/tonne in the United States, Germany and Austria. For BHK, Chinese mills will be the high-cost producers and there will be cost support in the low to mid $500s/tonne. We anticipate that spot prices will fall to these levels while net contract prices will be somewhat higher, as usually occurs in during weak market conditions. The Chinese currency has recently weakened slightly relative to the dollar but remains quite strong relative to most other currencies in the world. If the Chinese allow the renminbi to weaken substantially relative to the dollar—to keep it more in line with other currencies—then the cost curve for BHK will shift downward by more than we are expecting. While we see the possibility of some further price improvement for BHK in the months ahead, BSK has peaked and will trend downward. This situation is historically unusual, but so was the gap in prices between NBSK and BEK in 2014, which was estimated at $165/tonne in China last September. The gap tends to overshoot the longrun average in both directions, although that is not our base-cast projection at present. The upturn in BHK prices over the past few months was expected, based on consumer inventory adjustments, especially in China, and BHK capacity leaving the market—either going out of production or switching to BSK. Whether our projection of a continuation of the rise into 2015 is correct will be soon determined. December and January are typically relatively weak in terms of paper production, but then we should see the usual surge in demand for and production of woodfree printing & writing paper in the Northern Hemisphere's spring months, which will substantially boost market pulp consumption, especially in Europe. The startup of CMPC's Guaíba mill in Brazil is scheduled for May and this will depress pricing for BHK in the second and third quarters. For bleached kraft pulp as a whole on a worldwide basis, our most recent five-year forecast shows a shipment/capacity ratio in 2015 of just 92.4%, revised down from an earlier projection of 93.8%, based on recent economic developments in Europe and China. The role of China will be critical here. As expected, Chinese buyers are restocking BHK, which should support an upward price trend until the Northern Hemisphere's summer months approach, at which time we show a price decline. We expect Chinese inventories to be built rather aggressively starting in the third quarter of 2015. RISI9 World Pulp Monthly - January 2015 Figure 6 European Consumer Pulp Inventories Utipulp Seasonally Adjusted Days of Supply 24 Days of Supply (SA) 23 22 21 20 19 18 17 16 15 BSK DAYS SA Source: RISI, Utipulp 10 11 12 BHK DAYS SA 13 14 Figure 7 NBSK Effective List Price for Contract Transactions in Three Currencies Currency Units per Tonne, Delivered to Northern Europe 1,200 Euros,, $ US $ Canadian $ Euros 1 100 1,100 1,000 900 800 700 600 500 400 300 S Source: RISI 98 99 00 01 02 03 04 05 06 10RISI 07 08 09 10 11 12 13 14 15 SEVENTEENTH ANNUAL RISI EUROPEAN CONFERENCE March 9-11, 2015 • Hilton Amsterdam Hotel, Amsterdam, The Netherlands • www.risi.com/euroconf Helping the Forest Products Industry Make Better Decisions Register Today! For program updates, sponsorship information or registration details please visit the event website or contact us directly. Email: [email protected] • Tel: + 866.271.8525 • + 32.2.536.0748 • www.risi.com/euroconf Organized by: Sponsored by: World Pulp Monthly - January 2015 1/31/2015 Table 1* 20 Country Chemical Paper Grade Market Pulp Summary Thousand Tonnes, Seasonally Adjusted Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 20 Major Producing Countries** Shipments (Actual) Shipments (Seas Adj) %Ch - Year Earlier 3,771 3,832 4.8 3,744 3,729 0.9 3,936 3,639 0.6 3,452 3,638 1.4 3,486 3,654 -1.0 3,823 3,628 -2.8 3,636 3,755 -1.2 3,748 3,816 2.1 3,912 3,913 8.1 3,706 3,822 1.5 3,790 3,842 2.9 4,190 3,918 5.7 3,827 3,886 1.4 3,876 3,849 3.2 4,070 3,773 3.7 Producer Inventories (Actual) Producer Inventories (Seas Adj) Days Of Supply 4,102 4,034 31.6 3,983 4,043 32.5 4,023 4,206 34.7 4,435 4,341 35.8 4,373 4,271 35.1 4,434 4,518 37.4 4,460 4,621 36.9 4,384 4,537 35.7 4,101 4,311 33.1 4,456 4,232 33.2 4,648 4,280 33.4 4,167 4,172 31.9 4,244 4,189 32.3 4,259 4,385 34.2 4,381 *** 4,560 *** 36.3 Capacity Strike-Adj Capacity Shipments/Capacity 3,970 3,970 0.97 3,974 3,974 0.94 4,008 4,008 0.91 4,046 4,046 0.90 4,080 4,080 0.90 4,095 4,095 0.89 4,107 4,107 0.91 4,121 4,121 0.93 4,145 4,145 0.94 4,172 4,172 0.92 4,195 4,195 0.92 4,201 4,201 0.93 4,204 4,204 0.92 4,207 4,207 0.91 4,217 4,217 0.89 PRICES AND COSTS (US DOLLARS PER TONNE) Delivered to N. Europe -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Birch Kraft No. Bl. Hardwood Kraft 895 765 725 905 775 730 905 775 730 915 770 730 920 770 730 925 765 730 925 760 725 925 750 720 925 735 710 930 725 700 930 720 695 935 725 700 935 730 705 935 740 715 935 745 720 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 860 715 870 720 870 720 880 720 880 720 880 715 880 710 880 710 880 700 880 690 880 685 885 690 885 695 885 705 885 715 Bl. Brazilian Eucalyptus Kraft 765 775 775 770 770 765 760 750 735 725 720 725 730 740 745 Delivered to United States -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Hardwood Kraft 970 860 990 860 990 860 1010 870 1010 870 1030 875 1030 875 1030 875 1030 870 1030 855 1030 840 1030 835 1030 835 1025 835 1020 835 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 930 860 950 860 950 860 970 870 970 870 990 875 990 875 990 875 990 870 990 855 975 840 975 835 975 835 975 835 975 835 Bl. Brazilian Eucalyptus Kraft 860 860 860 870 870 870 865 855 845 830 820 815 830 840 840 Delivered to China -- Average Price -- Spot and Contract No. Bl. Softwood Kraft 720 740 750 750 750 770 750 720 720 725 730 730 725 720 700 Bl. Radiata Pine Kraft 710 730 730 730 730 750 730 700 710 710 710 710 710 710 690 Bl. Eucalyptus Kraft 645 655 655 645 645 620 600 590 575 575 575 575 590 600 610 544 506 527 504 521 507 521 515 530 516 538 515 544 512 552 513 543 507 542 490 534 483 531 477 523 475 1.92 1.72 1.94 1.71 1.98 1.69 1.94 1.68 1.91 1.66 1.89 1.65 1.86 1.62 1.90 1.62 1.90 1.66 1.93 1.72 1.93 1.76 1.95 1.77 Avg Var. Cost Delivered to N. Europe, High Cost Region Bl. Softwood Kraft Bl. Hardwood Kraft 560 501 553 497 Price/Var. Cost Ratios Before Discounts, High Cost Region Bl. Softwood Kraft Bl. Hardwood Kraft 1.73 1.72 1.79 1.73 1.82 1.70 * Data revised December 2006, adding estimated German BSK, removing Portugal to conform to revised industry association reporting. ** Canada, United States, Finland, Sweden, Norway, Brazil, Chile, Argentina, Uruguay, Germany, Spain, France, Belgium, Austria, South Africa, Swaziland, Morocco, New Zealand, Japan, South Korea. These countries represent 81% of world supply in 2006. *** Estimated For information on contract discounts, see Table 5 footnotes 12RISI World Pulp Monthly - January 2015 1/31/2015 Table 2* 20 Country Chemical Paper Grade Market Pulp Summary Thousand Tonnes, Seasonally Adjusted Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 20 Major Producing Countries** Shipments (Actual) Shipments (Seas Adj) %Ch - Year Earlier 3,724 3,925 7.9 3,716 3,895 6.6 4,120 3,910 7.8 3,805 3,930 4.7 3,826 3,895 2.1 3,884 3,885 -0.7 3,913 4,035 5.6 4,020 4,075 6.1 4,438 4,150 5.9 4,102 4,165 7.2 4,179 4,150 7.8 4,412 4,090 8.4 3,976 4,190 6.8 3,997 4,190 7.6 4,415 4,190 7.2 Producer Inventories (Actual) Producer Inventories (Seas Adj) Days Of Supply 4,446 4,542 34.7 4,458 4,565 35.2 4,704 4,617 35.4 4,823 4,655 35.5 4,914 4,749 36.6 5,128 4,878 37.7 4,635 4,880 36.3 4,415 4,794 35.3 4,705 4,700 34.0 4,560 4,619 33.3 4,717 4,581 33.1 4,796 4,608 33.8 4,647 4,549 32.6 4,610 4,503 32.2 4,410 4,493 32.2 Capacity Strike-Adj Capacity Shipments/Capacity 4,227 4,227 0.93 4,238 4,238 0.92 4,250 4,250 0.92 4,264 4,264 0.92 4,280 4,280 0.91 4,316 4,316 0.90 4,356 4,356 0.93 4,390 4,390 0.93 4,395 4,395 0.94 4,394 4,394 0.95 4,395 4,395 0.94 4,401 4,401 0.93 4,408 4,408 0.95 4,416 4,416 0.95 4,431 4,431 0.95 PRICES AND COSTS (US DOLLARS PER TONNE) Delivered to N. Europe -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Birch Kraft No. Bl. Hardwood Kraft 915 745 720 895 750 725 880 760 735 870 760 735 850 750 725 830 720 695 790 700 675 765 675 650 765 675 650 775 690 665 800 700 675 815 710 685 825 720 695 840 730 705 840 740 715 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 865 715 845 715 830 725 820 725 800 715 780 685 740 665 715 640 715 640 725 655 750 665 765 675 775 685 790 695 790 705 Bl. Brazilian Eucalyptus Kraft 745 750 760 760 750 720 700 675 675 690 700 710 720 730 740 Delivered to United States -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Hardwood Kraft 1010 835 990 835 970 845 960 845 940 835 920 805 880 785 855 760 855 760 865 775 890 785 905 795 915 805 930 815 930 825 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 965 835 945 835 925 845 915 845 895 835 875 805 835 785 810 760 810 760 820 775 845 785 860 795 870 805 885 815 890 825 Bl. Brazilian Eucalyptus Kraft 850 850 860 860 850 820 800 775 775 790 800 810 820 830 840 Delivered to China -- Average Price -- Spot and Contract No. Bl. Softwood Kraft 680 660 650 640 630 610 590 590 590 610 620 630 640 650 660 Bl. Radiata Pine Kraft 655 640 635 630 620 600 580 580 570 590 600 610 620 630 640 Bl. Eucalyptus Kraft 620 630 640 630 620 600 570 540 540 560 570 580 580 590 600 487 448 481 440 483 433 480 428 477 423 474 417 471 415 467 416 460 421 458 424 458 427 462 430 463 433 465 436 2.03 1.90 2.02 1.96 1.99 1.98 1.96 1.99 1.93 1.94 1.86 1.92 1.82 1.87 1.83 1.86 1.88 1.87 1.94 1.89 1.98 1.90 1.98 1.91 2.01 1.92 2.00 1.93 Avg Var. Cost Delivered to N. Europe Bl. Softwood Kraft Bl. Hardwood Kraft 499 448 Price/Var. Cost Ratios Before Discounts Bl. Softwood Kraft Bl. Hardwood Kraft 2.02 1.90 * Data revised December 2006, adding estimated German BSK, removing Portugal to conform to revised industry association reporting. ** Canada, United States, Finland, Sweden, Norway, Brazil, Chile, Argentina, Uruguay, Germany, Spain, France, Belgium, Austria, South Africa, Swaziland, Morocco, New Zealand, Japan, South Korea. These countries represent 81% of world supply in 2006. *** Estimated For information on contract discounts, see Table 5 footnotes RISI13 World Pulp Monthly - January 2015 1/31/2015 Table 2* (cont.) 20 Country Chemical Paper Grade Market Pulp Summary CANADIAN DOLLARS PER TONNE Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Delivered to N. Europe -- Effective List Prices for Contract Transactions Exchange Rate (US$/C$) 0.82 0.80 0.79 0.80 0.79 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 0.79 0.78 0.78 0.77 0.76 0.76 0.76 0.77 0.77 0.78 No. Bl. Softwood Kraft No. Bl. Birch Kraft No. Bl. Hardwood Kraft 1,109 903 873 1,113 933 902 1,111 959 928 1,094 956 924 1,075 949 917 1,056 916 884 1,008 894 862 982 866 834 988 872 840 1,013 902 869 1,049 918 885 1,069 931 898 1,074 937 904 1,089 946 914 1,084 955 922 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 1,049 867 1,051 889 1,048 915 1,031 912 1,012 904 992 871 945 849 918 822 923 827 948 856 984 872 1,003 885 1,009 891 1,024 901 1,019 910 903 933 959 956 949 916 894 866 872 902 918 931 937 946 955 Bl. Brazilian Eucalyptus Kraft Delivered to United States -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Hardwood Kraft 1,224 1,012 1,232 1,039 1,225 1,067 1,207 1,062 1,189 1,056 1,170 1,024 1,123 1,002 1,098 976 1,104 982 1,131 1,013 1,167 1,030 1,187 1,043 1,191 1,048 1,205 1,056 1,200 1,064 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 1,170 1,012 1,176 1,039 1,168 1,067 1,150 1,062 1,132 1,056 1,113 1,024 1,066 1,002 1,040 976 1,046 982 1,072 1,013 1,108 1,030 1,128 1,043 1,132 1,048 1,147 1,056 1,148 1,064 Bl. Brazilian Eucalyptus Kraft 1,030 1,057 1,086 1,081 1,075 1,043 1,021 995 1,001 1,033 1,049 1,062 1,067 1,076 1,084 Delivered to China -- Average Price -- Spot and Contract No. Bl. Softwood Kraft 824 821 821 805 797 776 753 757 762 797 813 826 833 842 852 Bl. Radiata Pine Kraft 794 796 802 792 784 763 740 745 736 771 787 800 807 817 826 Bl. Eucalyptus Kraft 752 784 808 792 784 763 728 693 697 732 748 761 755 765 774 EUROS PER TONNE Delivered to N. Europe -- Effective List Prices for Contract Transactions Exchange Rate (US$/Euro) 1.16 1.16 1.13 1.11 1.09 1.08 1.06 1.05 1.05 1.06 1.07 1.07 1.07 1.08 1.08 No. Bl. Softwood Kraft No. Bl. Birch Kraft No. Bl. Hardwood Kraft 788 641 620 775 649 627 778 672 650 783 684 662 778 687 664 771 669 646 745 660 637 727 641 617 728 642 618 730 650 626 750 656 633 761 663 640 767 670 647 778 676 653 775 683 660 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 745 616 731 619 734 641 738 653 733 655 725 636 698 627 679 608 680 609 682 617 703 624 715 631 721 637 732 644 729 651 Bl. Brazilian Eucalyptus Kraft 641 649 672 684 687 669 660 641 642 650 656 663 670 676 683 Delivered to United States -- Effective List Prices for Contract Transactions No. Bl. Softwood Kraft No. Bl. Hardwood Kraft 870 719 857 723 858 747 865 761 861 765 855 748 830 741 812 722 813 723 814 730 835 736 845 743 851 749 862 755 859 762 So. Bl. Softwood Kraft So. Bl. Hardwood Kraft 831 719 818 723 818 747 824 761 820 765 813 748 788 741 769 722 771 723 772 730 792 736 803 743 809 749 820 755 822 762 Bl. Brazilian Eucalyptus Kraft 732 736 760 774 778 762 755 736 737 744 750 757 763 769 775 Delivered to China -- Average Price -- Spot and Contract No. Bl. Softwood Kraft 585 571 575 576 577 567 557 560 561 574 581 589 595 602 609 Bl. Radiata Pine Kraft 564 554 561 567 568 557 547 551 542 555 563 570 577 584 591 Bl. Eucalyptus Kraft 534 545 566 567 568 557 538 513 514 527 535 542 540 547 554 For information on contract discounts, see Table 5 footnotes 14RISI World Pulp Monthly - January 2015 1/31/2015 Table 3* Chemical Paper Grade Market Pulp Shipments by Grade and Destination Thousand Tonnes, Seasonally Adjusted Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 SHIPMENTS BY GRADE 20 Major Producing Countries** 3,832 Shipments %Ch Year Ago 4.8 3,729 0.9 3,639 0.6 3,638 1.4 3,654 -1.0 3,628 -2.8 3,755 -1.2 3,816 2.1 3,913 8.1 3,822 1.5 3,842 2.9 3,918 5.7 3,886 1.4 3,849 3.2 3,773 3.7 Bleached Softwood Kraft Shipments %Ch Year Ago 1,960 7.5 1,855 -2.0 1,839 1.6 1,822 0.7 1,839 -2.2 1,841 -3.5 1,901 1.5 1,896 1.2 1,880 1.0 1,881 -2.6 1,829 -4.2 1,825 -1.4 1,864 -4.9 1,906 2.7 1,855 0.9 Bleached Hardwood Kraft Shipments %Ch Year Ago 1,746 2.5 1,749 4.5 1,661 -1.9 1,688 2.8 1,685 -0.6 1,663 -3.0 1,727 -4.0 1,794 4.0 1,903 16.8 1,809 6.2 1,881 11.3 1,963 12.7 1,894 8.5 1,829 4.6 1,807 8.8 124 2.5 123 1.7 138 29.0 126 -1.6 128 12.3 122 10.9 125 -3.1 124 -10.8 128 0.8 129 1.6 129 -2.3 127 12.4 125 0.8 111 -9.8 108 -21.7 2 -77.8 2 -75.0 1 -87.5 2 -75.0 2 100.0 2 100.0 2 100.0 2 100.0 2 100.0 3 50.0 3 200.0 3 50.0 3 50.0 3 50.0 3 200.0 655 -0.6 630 -0.2 620 -3.1 623 -1.2 631 -1.7 626 -1.1 641 -4.6 645 1.6 674 4.5 603 -3.8 666 4.3 644 2.1 626 -4.5 661 4.8 Unbleached Kraft Shipments %Ch Year Ago Sulfite Shipments %Ch Year Ago SHIPMENTS BY DESTINATION 631 To North America %Ch Year Ago 0.3 To W. Europe %Ch Year Ago 1,251 0.0 1,162 -5.1 1,168 -2.1 1,201 -2.7 1,180 -1.2 1,161 -1.9 1,197 -0.7 1,191 2.6 1,172 1.4 1,205 -1.3 1,188 1.2 1,222 6.0 1,179 -5.8 1,227 5.7 1,241 6.3 To E. Europe %Ch Year Ago 101 44.2 87 6.7 103 32.0 91 7.7 93 7.9 93 21.5 105 20.5 109 33.2 102 11.5 101 12.8 121 31.0 116 34.4 108 7.5 121 38.6 106 2.8 To Lat. America %Ch Year Ago 261 1.9 267 -4.0 266 2.1 268 2.9 270 2.3 265 3.9 276 -1.2 265 -7.2 262 -4.3 294 16.5 291 8.8 304 14.5 310 18.4 281 5.4 280 5.6 To Japan %Ch Year Ago 158 -3.9 166 4.7 154 -10.9 165 10.1 172 4.1 167 -2.7 171 -3.4 145 -11.8 186 20.4 149 -8.7 165 2.4 167 -11.6 155 -1.6 166 -0.3 160 4.1 To China %Ch Year Ago 992 33.9 872 11.1 814 2.8 794 15.0 819 -8.3 790 -7.7 862 -3.0 908 6.3 1152 30.2 917 1.3 908 2.6 891 -1.0 972 -2.0 927 6.3 818 0.5 464 -16.6 486 2.0 479 -1.2 437 -7.1 440 7.6 464 -1.1 471 -3.9 546 9.1 501 4.6 490 -3.9 526 5.7 506 23.6 531 14.4 468 -3.7 498 3.8 24 -1.5 27 30.3 28 15.7 25 -7.5 28 29.4 26 -0.1 32 22.8 25 4.8 25 -9.9 24 -7.5 30 35.7 22 -21.1 28 18.6 27 -0.2 25 -10.8 To Other Asia/Africa %Ch Year Ago To Oceania %Ch Year Ago * Data revised December 2006, adding estimated German BSK, removing Portugal to conform to revised industry association reporting. ** Canada, United States, Finland, Sweden, Norway, Brazil, Chile, Argentina, Uruguay, Germany, Spain, France, Belgium, Austria, South Africa, Swaziland, Morocco, New Zealand, Japan, South Korea. These countries represent 81% of world supply in 2006. *** Estimated RISI15 World Pulp Monthly - January 2015 1/31/2015 Table 4* Chemical Paper Grade Market Pulp Inventory and Days of Supply Thousand Tonnes, Seasonally Adjusted Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 20 Major Producing Countries** 4,034 4,043 Inventories Days Of Supply 31.6 32.5 4,206 34.7 4,341 35.8 4,271 35.1 4,518 37.4 4,621 36.9 4,537 35.7 4,311 33.1 4,232 33.2 4,280 33.4 4,172 31.9 4,189 32.3 4,385 34.2 4,560 *** 36.3 Bleached Softwood Kraft 1,568 Inventories Days Of Supply 24.0 1,625 26.3 1,628 26.6 1,677 27.6 1,665 27.2 1,699 27.7 1,720 27.1 1,680 26.6 1,628 26.0 1,530 24.4 1,687 27.7 1,652 27.2 1,708 27.5 1,747 27.5 1,855 *** 30.0 Bleached Hardwood Kraft 2,352 Inventories Days Of Supply 40.4 2,353 40.4 2,440 44.1 2,502 44.5 2,517 44.8 2,694 48.6 2,748 47.7 2,648 44.3 2,503 39.5 2,503 41.5 2,442 38.9 2,428 37.1 2,325 36.8 2,451 40.2 2,486 *** 41.3 Unbleached Kraft Inventories Days Of Supply 110 26.6 62 15.1 135 29.3 159 37.9 86 20.2 122 30.0 150 36.0 206 49.8 177 41.5 196 45.6 148 34.4 89 21.0 153 36.7 184 49.7 216 *** 60.0 Sulfite Inventories Days Of Supply 4 60.0 3 45.0 3 90.0 3 45.0 3 45.0 3 45.0 3 45.0 3 45.0 3 45.0 3 30.0 3 30.0 3 30.0 3 30.0 3 30.0 3 *** 30.0 * Data revised December 2006, adding estimated German BSK, removing Portugal to conform to revised industry association reporting. ** Canada, United States, Finland, Sweden, Norway, Brazil, Chile, Argentina, Uruguay, Germany, Spain, France, Belgium, Austria, South Africa, Swaziland, Morocco, New Zealand, Japan, South Korea. These countries represent 81% of world supply in 2006. *** Estimated 16RISI World Pulp Monthly - January 2015 Table 5 Market Pulp Price Summary US Dollars per Tonne Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 DELIVERED TO N. EUROPE -- EFFECTIVE LIST PRICES FOR CONTRACT TRANSACTIONS Northern Bl. Softwood Kraft Bl. Birch Kraft Bl. Hardwood Kraft 905 775 730 915 770 730 920 770 730 925 765 730 925 760 725 925 750 720 925 735 710 930 725 700 930 720 695 935 725 700 935 730 705 935 740 715 935 745 720 915 745 720 Southern Bl. Softwood Kraft Bl. Hardwood Kraft 870 720 880 720 880 720 880 715 880 710 880 710 880 700 880 690 880 685 885 690 885 695 885 705 885 715 865 715 Bl. Kraft Fluff (Untreated) 960 960 970 995 1,020 1,040 1,045 1,050 1,050 1,050 1,050 1,050 1,050 1,050 Bl. Eucalyptus Kraft 775 770 770 765 760 750 735 725 720 725 730 740 745 745 Bl. Hardwood CTMP 660 660 660 660 660 650 635 625 620 620 625 635 640 640 Northern Bl. Softwood Kraft Bl. Hardwood Kraft** Mixed Aspen DELIVERED TO UNITED STATES -- EFFECTIVE LIST PRICES FOR CONTRACT TRANSACTIONS 990 860 860 860 1,010 870 870 870 1,010 870 870 870 1,030 875 875 875 1,030 875 875 875 1,030 875 875 875 1,030 870 870 870 1,030 855 855 855 1,030 840 840 840 1,030 835 835 835 1,030 835 835 835 1,025 835 835 835 1,020 835 835 835 1,010 835 835 835 Southern Bl. Softwood Kraft Bl. Hardwood Kraft 950 860 970 870 970 870 990 875 990 875 990 875 990 870 990 855 975 840 975 835 975 835 975 835 975 835 965 835 Bl. Kraft Fluff (Untreated) 960 960 970 995 1,020 1,040 1,045 1,050 1,050 1,050 1,050 1,050 1,050 1,050 Bl. Eucalyptus Kraft 860 870 870 870 865 855 845 830 820 815 830 840 840 850 Bl. Softwood CTMP 875 895 895 915 915 915 915 915 915 915 915 910 905 895 Deinked Pulp 770 775 775 800 800 800 800 800 800 800 795 795 795 800 DELIVERED TO CHINA -- AVERAGE PRICE-- SPOT AND CONTRACT Northern Bl. Softwood Kraft 750 750 750 770 750 720 720 725 730 730 725 720 700 680 Bl. Radiata Pine Kraft 730 730 730 750 730 700 710 710 710 710 710 710 690 655 Bl. Eucalyptus Kraft 655 645 645 620 600 590 575 575 575 575 590 600 610 620 * Denotes revision *** Price index discontinued as of April 2013 due to declining market size Prices are for delivery to the paper mill in North America and CIF port for Europe and China. Prices are reported before contract discounts or performance rebates. For North America and Europe, contract discounts are mostly in the range of 18-25% in recent months. Discounts are currently higher in North America than in Europe. Contract discounts are smaller in some cases, especially for purchasers of very small volumes or buyers who are locked into multi-year contracts that specify the lower discount rates that prevailed two or three years ago. In China, contract discounts of of approximately 1-3% apply for NBSK, and 3-5% for BEK (up to approximately 8% for the largest buyers of BEK). Readers should note that discounts are a moving target and that information about actual discounts is closely held and hard to uncover, so the numbers above are approximations based on ongoing discussions with buyers and seller. Differences in discounts can also reflect differences in freight costs, rather than in differences in mill nets, so these numbers must be used with caution. RISI17 World Pulp Monthly - January 2015 1/31/2015 Table 6 China Pulp Imports, by Supplying Region Thousand Tonnes Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 YTD 2015 YTD 2014 %Ch 12-Mo Total* CHINA IMPORTS BSK Total Canada United States South America Eastern Europe Western Europe Oceania/Asia/Africa 556 191 103 75 76 101 9 575 208 125 89 58 85 10 543 219 112 93 84 26 9 609 236 103 96 82 80 12 541 173 109 111 78 60 10 555 162 123 112 82 63 13 567 219 101 110 79 48 9 6,683 2,310 1,187 1,218 920 941 108 6,493 2,337 1,130 1,264 616 1,024 122 3% -1% 5% -4% 49% -8% -12% 6,683 2,310 1,187 1,218 920 941 108 BHK Total South America Oceania/Asia/Africa Eastern Europe Canada United States Western Europe 568 322 185 17 1 42 1 522 322 184 10 4 1 1 572 332 201 14 1 22 1 582 334 216 18 1 12 2 643 415 199 14 3 12 1 614 402 191 13 7 1 1 732 475 210 22 10 14 1 6,997 4,201 2,314 178 52 223 29 6,435 3,352 2,296 150 197 338 102 9% 25% 1% 19% -74% -34% -71% 6,997 4,201 2,314 178 52 223 29 MEC Total Canada Oceania/Asia/Africa Western Europe Eastern Europe United States South America 163 132 20 1 11 0 0 151 119 19 1 12 0 0 124 101 16 0 7 0 0 135 99 23 2 11 0 0 114 90 14 1 10 0 0 105 80 22 0 4 0 0 108 80 26 0 3 0 0 1,509 1,161 215 12 120 0 1 1,387 1,113 166 22 85 0 0 9% 4% 29% -45% 41% 202% N.C. 1,509 1,161 215 12 120 0 1 UKP Total Eastern Europe United States South America Oceania/Asia/Africa Canada Western Europe 32 8 9 8 4 3 1 44 6 11 13 5 6 3 33 6 8 9 5 4 1 40 6 9 10 5 8 1 45 12 12 10 6 5 1 45 10 12 9 7 4 3 39 8 10 11 2 8 1 507 108 118 117 89 60 15 523 106 195 117 38 53 14 -3% 2% -39% 0% 134% 15% 2% 507 108 118 117 89 60 15 Source: China Customs Data * Rolling 12-month total © World Pulp Monthly provides economic analysis of the international market pulp business and is written by Kurt Schaefer, Dustin Jalbert and Minnie Kong. Subscriptions or client service: Call 866.271.8525 (USA & Canada) or +32.2.536.0748 or email [email protected]. Editorial offices: 4 Alfred Circle, Bedford, MA 01730-2340 USA. Copyright 2015 by RISI, Inc. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner. DISCLAIMER OF WARRANTY Although RISI, Inc. shall use its best efforts to provide accurate and reliable information, RISI, Inc. does not warrant the accuracy thereof. RISI, Inc. MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED FROM THE USE OF ITS SERVICES AND MAKES NO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. RISI, Inc. SUPPLIES ALL SERVICES ON AN "AS IS" BASIS. If notified of an error in its Services, RISI, Inc. shall take reasonable steps to correct such an error. 18RISI
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