According to the latest performance report released by canFor pulp, the company’s operating loss in the second quarter of this year was 8.1 million Canadian dollars, which was 68.85% lower than the operating loss of 26 million Canadian dollars in the first quarter. This was largely due to the rise of NBSK prices. In addition, the improvement of logistics also increased the shipment volume.

In the second quarter, the transportation volume of canFor pulp increased by 16% to 205000 tons month on month, mainly because the output increased by 6% to 187000 tons in the same period and the inventory decreased.

In the first quarter of 2022, the company’s pulp production was reduced by about 130000 tons due to shutdown. Among them, Northwood pulp plant reduced the production of nearly 70000 tons of commercial pulp due to the transformation of the lower furnace of No. 1 recovery boiler (RB1). At the same time, Taylor pulp plant was shut down due to lack of transport capacity in BC Province, reducing the production of nearly 30000 tons of chemical mechanical pulp. In addition, various small-scale shutdown caused a production reduction of 30000 tons.

In the second quarter, although the downtime still existed, NBSK’s production reduction was reduced. Taylor pulp plant continued to shut down due to logistics reasons, reducing the supply of chemical mechanical pulp market by nearly 60000 tons. In the middle of April, Northwood pulp plant was partially shut down due to RB1 upgrading and reconstruction, and the production of NBSK was reduced by about 10000 tons; During the period from June to mid July, the Northwood pulp plant was shut down for regular maintenance, reducing production by nearly 46000 tons (30000 tons in the second quarter and 16000 tons in July). In the second quarter, the production of pulp was reduced by about 100000 tons.

CanFor pulp said that with the substantial improvement of the global softleaf pulp market fundamentals earlier this year, the continuous global logistics restrictions and unplanned downtime led to the strong global pulp market in the second quarter. The rising trend of NBSK CIF China price in the first quarter continued until April and remained stable at the historical high. Therefore, the average price of NBSK CIF in China in the second quarter reached US $1008 / T, up US $109 / T or 12% month on month. In the second quarter, the average price of NBSK in North America increased by US $216 / T to US $1743 / T, up 14%. At the end of May 2022, the inventory of global coniferous pulp manufacturers was 38 days, an increase of 2 days over March 2022.

In the second quarter of this year, the revenue of canFor pulp’s paper business increased by 200000 to 6.2 million.

CanFor pulp expects that the global softleaf pulp market will remain strong in the third quarter, mainly due to the limited pulp production and supply and stable demand.