Unplanned Shutdown of Rottneros Vallvik Mill has a Negative Impact on Production

Wood costs for the pulp industry in Europe were generally lower in the 1Q/17 than in the previous quarter, continuing a downward trend that, depending on the country, has lasted for 4-6 years. The biggest price declines for pulplogs and sawmill residues in early 2017 occurred in Germany and France, according to the Wood Resource Quarterly (WRQ). The price reductions occurred mainly because of an oversupply of pulplogs, unchanged demand for wood fiber from the pulp industry, and reduced usage of raw-material by the competing wood pellet sector. In neighboring Austria, conifer pulplog prices have been very stable during most of 2015 and 2016 (in Euro terms) and prices did not change much in the 1Q/17. However, the weakening of the Euro against the US dollar has resulted in Austrian pulplog prices falling seven percent in two years. In the Nordic countries, wood fiber costs in the 1Q/17 were at their lowest levels since 2006 (in US dollars). This was mostly thanks to the weakening of the local currencies in both Sweden and Finland. The wood fiber costs currently account for about 60% of the manufacturing cost when manufacturing pulp in the region, according to Fisher International, so a reduction in prices for pulplogs and wood chips has a major impact in improving the competitiveness of the pulp and paper industry when competing in the global market place. Click Read More below for additional detail.

Minerals Technologies Inc. announced today that it has signed an agreement with Phoenix Paper LLC to re-establish a 35,000 ton per year satellite precipitated calcium carbonate (PCC) plant at its paper mill in Wickliffe, Kentucky. This paper mill had been idled for the past five years and was recently purchased and restarted by Phoenix Paper, a subsidiary of Shanying International, a Chinese-based company focused on entering the North American paper market. MTI has been providing its PCC from nearby sources to the Wickliffe site since the facility restarted operations in November of 2019. "We are very pleased to collaborate with Phoenix Paper to support production of higher value grades from their paper machine in Wickliffe, Kentucky, using our PCC technology," said Douglas T. Dietrich, Chief Executive Officer. "We are excited to see the redeployment of our PCC assets in North America through this opportunity."

•The U.S. imposes final duties on Canadian softwood lumber, following failed talks to end the decades-long dispute between the two countries. •The U.S. Department of Commerce announces slightly lower initial duties for Canadian producers West Fraser Timber and Canfor Corp., with combined anti-dumping and countervailing duties of 23.6% and 20.5% respectively, and maintains rates for Resolute Forest Products. •Commerce Secretary Wilbur Ross says the U.S. is confident the WTO, which may eventually rule on the dispute, would take its side; the DoC accuses Canada of unfairly subsidizing and dumping softwood lumber, a charge Canada denies.