Demand, pricing strengthening for NBSK market pulp

Photo: Rottneros

Rottneros' recently appointed CEO and President Carl-Johan Jonsson in commenting on the company's performance during the first nine months of 2013 said that global demand for NBSK pulp continues to grow and will contnue to bolster improved pricing.

"The global pulp market is continuing to improve this autumn. NBSK deliveries to China increased further in September, and demand for NBSK from Europe/North America continued to be good," — Carl-Johan Jonsson, CEO and President, Rottneros.

"The global pulp market is continuing to improve this autumn. NBSK deliveries to China increased further in September, and demand for NBSK from Europe/North America continued to be good," Jonsson said. "The supply of pulp for the remaining of the year will be affected by many producers having a number of maintenance shutdowns.

"There is expected to be a further rise in demand from, among others, tissue paper producers whose utilisation of production capacity is already high, as several of them will start-up new tissue paper machines during the autumn. There is a corresponding market situation for CTMP, with stronger demand during the autumn following a period characterised by uncertainty.

"Taken overall, there appears to be a favourable outlook for the long-fibre pulp market for the rest of the autumn.

"There is currently (mid-October) a clear upward price trend for NSBK in many markets. Several producers have announced price increases from 1 October, taking us to a price level of USD 900 per tonne in Europe.

"The continued strength of the SEK and the lower production availability at Vallvik have had a negative impact on our result. We are pleased to announce that the groundwood line at Rottneros Mill will now return to full production during the autumn following a decision taken by the Board of Directors to resume full operation.

"At Rottneros we have this autumn initiated an extensive thoroughgoing change process. Our areas of focus include improving availability of production and the utilisation of capacity at both mills, together with the optimisation of internal processes, such as logistics, purchasing, administration and use of raw materials. In addition, we are increasing our activities to further improve safety for our employees.

"All levels of the company will be involved in order to ensure a consensus of the prevailing situation, our strategic objectives and how to achieve the defined objectives. The main prerequisite for future success is in fact to establish a common understanding on all matters. Of course it will be necessary to take action. We will reshape our business culture and implement the responses required to ensure the sustainable, long-term profitability of Rottneros, in which we all can take pride together. Let us consider the challenges we face as our opportunities.

"It is from now and onward that we will proceed forward!"