Global Pulp & Paper: P&P Digester: Resale continues to grind lower

Research evidence excerpt

Global Pulp & Paper: P&P Digester: Resale continues to grind lower

Global Research

2 July 2026ab

Global Pulp & Paper Equities

Latin AmericaP&P Digester: Resale continues to grind lower

Forest Products & Paper

Caio Greiner

Daily resale prices were down another US$5/t w/w to US$564/t, as weak pulp Analyst

fundamentals in China continued to pressure BHK prices, which are already down caio.greiner@ubs.com

~US$25/t from mid-May levels. Imported BHK prices began to retreat as Chilean +55-11-2767 6294

producers Arauco and CMPC reportedly cut June export prices to China by ~US$20/ Andrew Jones

t, after buyers cut monthly purchases by ~50%. According to RISI, a few Analyst

international suppliers were already offering BHK at around US$550/t. andrew-i.jones@ubs.com

Furthermore, resale volumes appear to be readily available at lower prices than +44-20-7901 6545

imports, while domestically produced volumes can be found at even lower prices Timothy Handerson

than resale pulp. Our channel checks have indicated that subdued demand for paper Analyst

products in China (cyclical + seasonal) has prompted some paper producers to timothy.handerson@ubs.com

curtail output, also creating some demand headwinds for pulp. On the other hand, +62-21-2554 5000

these cuts were seen as positive for the paper space, and could even trigger a small Sharon Ding

upside for prices, improving producer profitability. Against this backdrop, P&B Analyst

producers were in no rush to restock on pulp. We anticipate BHK prices (both sharon.ding@ubs.com

imported and resale) to continue to decline in the next few weeks. +852-2971 6284

Anojja Shah

We favor exposure to Suzano (Buy, PT R$69), UPM (Buy, PT €26.7). Analyst

anojja.shah@ubs.com

+1-312-525 4310Key Data Tracker (see charts on page 2)