Day two of the Global Wood Summit in Vancouver opened with a presentation by Alejandra Glazebrook from PwC (Platinum event sponsor). Glazebrook presented insights into the forest sector, highlighting its significant contributions to the Canadian economy, employing over 200,000 people and generating approximately $35 billion.
Opening the panel on pulp & paper, a detailed overview of trends was presented by Kevin Mason, Managing Director of ERA Forest Products Research. ERA’s Kevin Mason reported that recycled fibre has become the biggest input for paper and board production—primarily for packaging issues, and end uses have shifted dramatically with paper in steady decline and tissue continuing its relentless growth. In response, there has been a steady stream of paper machines being converted to packaging—and that trend is expected to continue.
…Fraser Hart, Managing Partner at Trade Tree Online, focused his presentation on international markets, and particularly China, given that it has been building a significant amount of new pulp & paper capacity in recent years. Although wood availability for domestic pulp production will determine the degree to which this growth will continue, Hart said the result has been significant reductions in China’s pulp imports and increases in their imports of wood chips. Bob Flynn, at Timber & Wood, provided an overview of the global wood chip market. …While BC is struggling to find sufficient fibre to feed all existing pulp mills, the US Pacific Northwest has a current surplus, and the US South has a long-term surplus.
Zoltan van Heyningen, Executive Director, US Lumber Coalition, provided a US perspective on softwood lumber duties at the Global Wood Summit in Vancouver. Van Heyningen clarified the difference between policy-driven trade action (that can result in tariffs) and legal processes that administer US trade laws (that can result in antidumping and countervailing duties). According to van Heyningen:
NEW YORK — Mercer International reported third quarter 2024 Operating EBITDA of $50.5 million, an increase from $37.5 million in the same quarter of 2023 and $30.4 million in the prior quarter of 2024. In the third quarter of 2024, net loss was $17.6 million compared to a net loss of $26.0 million in the third quarter of 2023 and a net loss of $67.6 million in the second quarter of 2024, which included a non-cash impairment of $34.3 million against goodwill related to the Torgau facility. Mr. Juan Carlos Bueno, Chief Executive Officer, stated: “In the third quarter, softwood pulp markets continued to be strong and fiber costs remained stable. However, our operating results were constrained as a result of lower pulp sales volumes caused by unplanned downtime at our Peace River mill and other unexpected production events.