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Study: B.C. pulp mills to be hit hardest by low fibre supply


February 13, 2020
By Kristina Urquhart
Kristina Urquhart

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A new report by Fastmarkets RISI benchmarks Canadian pulp mills that are vulnerable to the current decrease in fibre supply.

The “British Columbia Pulp Mill Closure Risk Study” compares five indicators for 15 integrated and market pulp mills in B.C. and another 43 across Canada.

Those indicators include cost position, market prospects, corporate significance of the mill, exchange rate exposure and regional wood supply.

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To arrive at the scores, Fastmarkets RISI used its timber supply and demand models alongside estimates of demand for roundwood by product sector.

In an October 2019 infographic, the Sweden-based research firm indicated B.C. pulp mills in particular are being challenged by very low pulp prices, limited fibre availability and high fibre costs.

The infographic indicates that 70 per cent of B.C. pulp mills have seen a decrease in chip supply due to sawmill closures and curtailments in the province.

To see which pulp mills are most at risk of closure, visit Fastmarkets RISI.

Printed with permission from Fastmarkets RISI.