Canfor Pulp Products Inc. recently reported its fourth quarter of 2024 results:
- Q4 2024 operating income of $4 million; net income of $3 million, or $0.04 per share.
- Market fundamentals remained relatively flat throughout most of the quarter, with some positive momentum late in the period as producers worked to reduce their higher-than-average inventory levels.
- 22% decrease in pulp production during Q4 2024 (versus Q3 2024) primarily due to the indefinite curtailment of one production line at its Northwood NBSK pulp mill in August 2024.
- Persistent challenges associated with the availability of economic fibre in British Columbia.
Commenting on the Company’s fourth quarter results, CPPI’s President and Chief Executive OEcer, Stephen Mackie, said,
“We are pleased to see improved results during the fourth quarter and appreciate the resilience of our employees as we continued to transition to reduced operating capacity, as well as their focus on improving our operational performance and reliability. While market conditions have showed some signs of improvement late in the fourth quarter and early into 2025, we continue to navigate the external challenges facing our business, including the availability of economically viable fibre and the actual and potential tarifs on exports into the US.”
Looking forward, global softwood pulp market conditions are projected to improve through the balance of the first quarter and into the second quarter of 2025, as global supply dynamics adjust to new hardwood capacity and as pulp producer inventories normalize. On the demand side, steady Chinese demand is anticipated to absorb these changes in supply. The Company continues to monitor the trade situation between Canada and the US and mitigation plans are underway to mostly offset the impact of the tariffs on US shipments.
“With its high quality, specialty product offering and market diversification the Company is well-positioned to respond to actual and potential tariffs”, Canfor Pulp states.
