20 INTEGRATED ANNUAL REPORT 2023 The year started, and ended, with an arguably insatiable market demand for Acacia. Extremly busy chip-vessel line-ups at both Richards Bay and Durban were experienced. There was ongoing interest in the NCT Eucalyptus and biomass offering by current and potential new clients. Ongoing provision of global market news and developments via the monthly Member Brief. Special briefs outlining the ongoing situation at Durban Wood Chips (vessel schedule changes and existing shed capacity) guiding overall member supply. Regular engagement with members at District level regarding supply against allocation and provision of additionals as and when appropriate to replace “dropped” loads in order to ensure that client demand was met. Forward price increases designed to allow members to capitalise on future positive market prospects: • R130 / tonne on Acacia (effective 20 July 2022) • R100 / tonne on Eucalyptus (effective 1 August 2022). Decision to increase the Guaranteed Supply Premium (GSP) to R50 / tonne on both Acacia and Eucalyptus. Applicable to: • Acacia 90 to 110% plus of sliding scale • Eucalyptus 90 to 110% of sliding scale. (The 110% plus extension to the Acacia benefit was in keeping with the massive call for Acacia throughout the year). R25 / tonne price increase for both Acacia and Eucalyptus (effective 1 October 2022). The limit for approved advance requests was raised to R120 000 / month maximum, to assist those members in need of emergency cash flow. NCT BayFibre remained open throughout December 2022 to facilitate maximum Acacia access. NCT mill log yards were used as reservoirs as far as practically possible. Ongoing market demand for Acacia and increasing interest shown in Eucalyptus Providing access to markets and meeting tight supply deadlines
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