Strong pulp demand supports high operating rates
South America

Quarterly Market Fundamentals

Brazilian pulp production and exports in the first nine months of 2014 were 7.7% and 12.8% higher, respectively, on a year-over-year basis. Previously anticipated pricing pressure is no longer expected in Q4 as a result of a pulp mill closure in Europe.

Canexus Brazil experienced slightly higher than expected sodium chlorate demand from its major customer in Q3, partially offsetting the effects of increased competition in the merchant market.

In the first nine months of 2014, the Brazilian chlor-alkali industry capacity utilization rate was 84.3%, 1.1% higher than the same period in 2013. Canexus Brazil’s chlor-alkali capacity utilization rate was 95.5% for the same period.

 

Expected Brazilian Pulp Capacity