News & Views September 2023

14 From the General Manager As good as 2022 was for us as wood chip suppliers in South Africa, and the positive messages we conveyed during our zonals this year, I was mindful to add a cautionary note as to what we were starting to see in international pulp markets. Chinese Pulp Price Trends $/tonne In April I reported that the Chinese pulp market was again on the downslide after an incredible high during 2022. At that time, I pointed out a Chinese Hardwood pulp price level of $732 per tonne. Since then, it has collapsed further and for a while was below $500 per tonne. Analysts only expected this to happen over the course of more than a year. The European prices have also not been spared and have crashed in unison with China. There has been a small uptick on price back above $500, but the rapid decline, indicative of the poor Chinese and European economies, lack of paper demand and a surplus of pulp capacity is now seriously taking its toll on Pulp and Paper manufacturers. Danny Knoesen European Pulp Price Trends $/tonne

RkJQdWJsaXNoZXIy MjgyNjA0