13 INTEGRATED ANNUAL REPORT 2023 Our mills continue to operate efficiently, and Richards Bay mill complex has bounced back fantastically since having a protracted outage on one line during February and March 2023. We continue to invest in increasing our chipping capacity in Richards Bay. The strategic depot being developed near Umlaas road should become operational during the course of this year and will offer tactical options to NCT operations and members alike, as we utilise it to improve our supply chain efficiencies. The outlook for 2023/24 is positive, however we continue to track the international wood-chip markets and the links between wood-chip demand and the worldwide pulp prices. The cyclical nature of pulp pricing demands constant scrutiny and again in the year under review, Chinese pulp prices peaked above $865 per tonne in quarter three of 2022, then plummeted to below $600 at the end of our financial year. As many countries’ economies struggle, the pulp price continues to trade poorly; below $500 as of June 2023 and this is now starting to impact buying patterns of Chinese pulp makers. We will have vessels postponed as the Chinese come to grips with their weak markets. Our Japanese demand is very stable and worldwide there remains an overall wood-fibre shortage. As we ride out the usual cyclical challenges, our organisation remains well poised, with a strong bill of health, for what the coming years bring to our doorstep. I take thi s oppor tuni ty to congratulate our management team and staff for their contributions throughout a fantastic year for the Co-operative and am proud that we can count on its ongoing commitment to our members and our organisation into another year – no doubt filled with further unknown challenges. On behalf of all NCT staff, I thank the Chairman, Mr Philip Day, and our Board members for their ongoing support and contributions to another successful year for NCT. DANNY KNOESEN | GENERAL MANAGER
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