Verso Corporation has decided to implement downtimes and curb production, and has announced that it intends to to make 100,000-110,000 t less graphic paper in the second quarter in order to balance supply and demand. Specialty paper, pulp and packaging paper production will reportedly not be affected.
The explanation for this move is the Covid-19 pandemic which will make it difficult to forecast demand. ”When we apply industry forecast across Verso's book of business we could experience approximately a 40 per cent decline in shipments in the second quarter of 2020 compared to the second quarter of 2019," the company explains.
In the first quarter of 2020, Verso's deliveries were lower year-on-year by around 100,000 t, standing at 500,000 t. According to the company, the closure of the Luke mill last year had contributed a big part to this drop.