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Canfor extends the reduction at the Taylor pulp mill in September.
The company announced an extension of its second quarter results released on Friday, July 26, citing current market conditions. The reduction runs for five weeks until 9 September, reducing the summer production of bleached chemo-thermo-mechanical pulp by about 50 000 tonnes. Originally, the factory was to restart on August 5th.
"Our pulp sector … delivered solid results in the second quarter, but we have begun to see significant price erosion for NBSK pulp and BCTMP, which combined with the reduction in the price of pulp and paper. British Columbia Fiber Supply Due to Sawmill Cutbacks Globally Leading to Decisions to Reduce Activities in the Third Quarter, "Canfor's President and CEO Don said Kayne.
"We expect a modest increase in pulp prices by the end of 2019 and by 2020 as global inventory levels return to equilibrium."
Canfor Pulp Products Inc. reported net income of 11 cents per share in the second quarter, or 16 cents US. Pulp shipments increased 11% from the first quarter to 288,000 tonnes, but decreased 12% from the second quarter of 2018.
At the same time, demand for bleached kraft paper is expected to decline for the rest of the year, the company said. Paper production will be reduced by 4,000 tonnes in September, with the Prince George paper mill scheduled for maintenance.
Overall, Canfor Corp. recorded an operating loss of $ 49.7 million for the second quarter.
– News from the Alaska Highway
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