Sateri Holdings Limited, a global specialty cellulose company based in Hong Kong, recently announced its unaudited results for the six months ended June 2014. The Group produces dissolving wood pulp ("DWP") using wood resources grown from its captive plantations in Brazil, and viscose staple fiber ("VSF") in China using DWP as its main raw material feedstock.
During the first half of 2014, the Group focused on ramping up its VSF plant in Fujian, China which commenced production in December 2013. The Group's two VSF plants mainly use rayon-grade pulp from its BSC plant. As a result, the Group is now focused on selling just two products, namely VSF and specialty-grade DWP, and hence much less exposed to market price fluctuations in the rayon-grade DWP market as compared to the past.
In the first half of 2014, VSF market conditions remained challenging. VSF prices faced significant downward pressures despite a slight increase in demand, due to China's slower economic growth, ample supply and a weak downstream pricing environment, and fell to under US$1,700 per metric ton at the end of June 2014.
The Group continued its ongoing strategy to further penetrate into the specialty-grade DWP segment. Sales volume for this segment increased by 13% in the first half of 2014.
