Forestry & Paper Weekly Industry Insights
Key message: YTD European corrugated performance mixed due to tourism, or rather the lack thereof.
UPM: 2020 Capital Markets Day
Key message: Spearheads of growth led by sustainability with clear capital allocation framework and industry leading balance sheet.
DS Smith: European Packaging Insights
Key message: Limited downside for testliner prices from current levels, but further pressure expected on OCC prices. Underlying demand robust with export markets strong.
Forestry & Paper Weekly Industry Insights
Key message: Stora could be next to announce graphic paper closures and more newsprint producers mull over conversions to testliner.
Lecta: European CWF and Specialties Insights (Q2 20A)
Key message: Sappi’s volumes hold up materially better, but margin contraction in line. Lecta thinks Stora conversion is enough to balance CWF in Europe (July demand -26% y/y).
UPM restructuring: Closure plans & sale mainly impacting its Communication Papers Segment
Key message: Encouraging signs of Graphic Paper supply tightening in Europe, which provides 30% of global graphic paper (70mtpa).
SCA: Exits Publication Paper Segment
Key message: SCA exits remaining Paper exposure in favour of Pulp. A welcome announcement for Coated Paper and UWF producers in Europe.
Suzano: Q2 20A Insights (Pulp)
Key message: Suzano appears to be flushing out high cost producers. 55% EBITDA margin with bottom of cycle pulp prices, which are unsustainable, in their view.
Mondi: H1 20A Key Thoughts
Key message: Solid H1 with dividends resuming. H2 headwinds from planned downtime. Promising signs of China starting to fill its containerboard gap.
Lenzing: Q2 20A Insights (VSF & DWP)
Key message: Their DWP expansion in Brazil is on track. Low VSF and DWP prices unsustainable; however, VSF inventory overhang (125% of 5-yr average) to cap VSF prices in the ST.