The Navigator Company applies 15% surcharge to tissue prices due to strong cost increases

The company reported operating income of $102 million in the quarter, compared to $406 million in the second quarter of 2021. The $304 million variation reflects lower realized prices and shipments in wood products ($342 million), partly offset by higher realized prices in the pulp and paper segments ($32 million), and higher volume in market pulp ($9 million). The wood products segment generated operating income of $64 million in the quarter, a decrease of $341 million from the previous quarter. With benchmark lumber prices falling from the record highs attained in May, the average transaction price fell to $573 per thousand board feet, a $583 per thousand board feet, or 50%, decrease from the previous quarter. The company generated operating income of $46 million in the market pulp segment, an increase of $16 million from the previous quarter. The average transaction price increased by $39 per metric ton, or 5%, to $826 per metric ton, with gains in all grades. The tissue segment incurred an operating loss of $9 million in the quarter, $2 million wider than the previous quarter. The average transaction price decreased by $60 per short ton, or 3%, due to unfavorable product mix, while delivered costs decreased by $109 per short ton, or 5%, with less downtime than in the previous quarter. The company generated an operating income of $16 million in the paper segment in the quarter, an increase of $23 million from the previous quarter. The average transaction price rose by $54 per metric ton, or 9%, with price recovery reflecting tightening global markets.

UPM Raflatac’s innovative Vanish PCR plastic labeling materials for the U.S. market have again been independently certified by SCS Global Services as featuring at least 90 percent post-consumer recycled content (PCR) in both the face and liner. The UPM Raflatac Vanish™ PCR range of clear PET films label materials enables brands to maximize eye-catching visuals with more sustainable labels that support the circular economy. Ideal for food, beverage, or personal care end-uses, these thin yet robust products use less raw material compared to other standard clear-on-clear products. Vanish PCR is the only clear-on-clear labeling solution on the market that incorporates recycled content, featuring PET face and liners made from 90 percent post-consumer recycled content. The recycled content in all of the UPM Raflatac 1.2 mil and 0.92 mil face and liner label materials have been verified in accordance with SCS Global Services’ Recycled Content Standard.

Meadow Lake Tribal Council (MLTC) joined Paper Excellence today in calling on CN to provide more rail cars for Meadow Lake Mechanical Pulp Inc. The pulp mill is dependent on CN, which has failed to adequately transport Meadow Lake mill’s product to ports for months. Paper Excellence leadership announced a further production slowdown due to the lack of rail service on February 11th. The mill has not operated at full capacity since December. Currently, CN continues to provide less than 40% of requested rail cars and now the mill has had to resort to participating in a CN auction process that drives up prices for the few cars that are available.