Key message: Pulp prices erode further in Europe, while hardwood edges up in China. Graphic paper prices continue to soften and remain elevated with further downside likely. Containerboard prices stable amid further downtime. Gas Futures in Europe now trading at €39/MWH.
Key message: Paper pulp and hardwood DP prices stable. UWF sees further erosion, while containerboard prices continue to echo stability. Gas Futures now trading at €35/MWH.
May Insights: Paper pulp prices were firmly in the red across all regions, while DP softened slightly. Graphic paper prices edged down further, and containerboard prices dropped 4%. Meanwhile, cost deflation continues, except for OCC. Most packaging and graphic paper producer share prices were in the red in Europe and North America except for Mondi, up 5%. Compared to the 5-yr average EV/EBITDA, most of the sector continues to trade at a discount. The average 1-yr fwd. div. yield of the sector is 4%.
Key message: Hardwood paper pulp shows signs of stabilization in China, and hardwood DP is stable at $900/t. Graphic paper prices edge down slightly and containerboard prices continue to hold their ground. Natural gas futures drop 10% w-o-w, now trading at €26/MWH.
Key message: Paper pulp prices under further pressure, and hardwood DP is now $900/t. Graphic paper prices flat. Containerboard prices see green shoots of stabilization and gas Futures now trading at €29/MWH.
Key message: Excluding the forestry fair value gains, the stable performance was underpinned by Flexible Packaging as profitability in Corrugated Packaging and UFP reduced. Planned Russian disposal ongoing and Q2 is likely to be the bottom before profitability starts to improve again in Q3 23E.
Key message: Paper pulp prices firmly in the red, while DP prices are surprisingly stable. Graphic paper prices start to falter, and containerboard prices come under further pressure, while OCC jumps 3%. Gas Futures stable at €42/MWH.
Key message: More relief for paper pulp buyers in Europe. Hardwood DP prices stable, while softwood DP comes under further pressure. Graphic paper stable, and testliner prices further in the red. Gas Futures stable at €43/MWH.
Key message: Paper pulp and hardwood DP prices stable, while softwood DP comes under pressure. Graphic paper stable, and containerboard prices further in the red. Gas Futures stable at €43/MWH.
Key message: Paper pulp prices weaken, while DP gains further ground. Graphic Paper mostly stable, except for UWF. Containerboard prices further in the red, while OCC jumps 4%. Gas Futures stable at €44/MWH.