Pulp and Paper

Canfor Pulp

Canfor Pulp Reports Fourth Quarter 2025 Loss on Weak Global Softwood Pulp Markets

March 6, 2026 - Canfor Pulp Products (TSX: CFX) on March 5 reported its fourth quarter of 2025 results:

Overview

  • Q4 2025 operating loss of $85.6 million; net loss of $133.6 million, or $2.05 per share.
  • As a result of the prolonged weakness in global pulp markets and the Company's persistent challenges accessing economically viable fibre, an asset write-down and impairment charge totaling $106.5 million was recognized in Q4 2025, which included a write-off of a previously recognized deferred tax asset of $52.5 million.
  • After taking into consideration adjusting and one-time items totaling $57.5 million, the adjusted operating loss for Q4 2025 was $28.1 million, compared to a similarly adjusted operating loss of $11.1 million in Q3 2025.
  • Global softwood pulp markets were relatively flat through Q4 2025, principally driven by elevated pulp producer inventory levels.
  • Pulp production declined 4% in Q4 2025 (versus Q3 2025) primarily due to a scheduled maintenance outage at its Northwood NBSK pulp mill, including a slower than anticipated restart.
  • Jointly with Canfor, the Company announced in December 2025 it had entered into an Arrangement Agreement, where Canfor would acquire all of the issued and outstanding common shares of Canfor Pulp not already owned by Canfor, for either $0.50 in cash consideration or 0.0425 of a common share of Canfor (the "Proposed Transaction"). Closing is anticipated in Q1 2026 and is subject to all applicable shareholder, court and regulatory approvals.
  • As announced in February 2026, Management's forecasts indicate a breach of financial covenants is highly probable as early as March 31, 2026. Should the Proposed Transaction not close, the Company would re-engage with its lenders for further temporary relief while it works to undertake a restructuring process.

The Company reported an operating loss of $85.6 million for the fourth quarter of 2025, compared to an operating loss of $16.0 million for the third quarter of 2025.

CEO Comments

Commenting on the Company's fourth quarter results, Canfor Pulp's President and CEO, Stephen Mackie, said, "The Company faced another extremely challenging quarter, as ongoing global economic uncertainty weighed heavily on softwood pulp market conditions. As a result, we remain cautious heading into 2026 as we continue to navigate significant external pressures on our business, including the prolonged downturn in softwood pulp markets and the ongoing constraints in securing economically viable fibre."

Fourth Quarter Highlights

Global softwood pulp markets were relatively flat through the fourth quarter of 2025, driven mainly by elevated pulp producer inventory levels. Towards the end of the period, however, buyer sentiment began to improve. Lower global pulp prices prompted a modest uptick in purchasing activity, particularly in China, as producers worked to draw down higher-than-average inventory levels. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, gained some positive momentum late in the quarter, finishing December at US$690 per tonne. Despite this late uplift, for the fourth quarter overall, US-dollar NBSK pulp list prices to China averaged US$671 per tonne, down US$19 per tonne, or 3%, from the prior quarter.

Outside China, market conditions remained difficult. Demand and pricing in other global regions weakened through the fourth quarter, with the average US-dollar NBSK pulp list price to North America falling by 8% from the previous quarter.

Global softwood pulp producer inventories remained elevated and at the top end of the balanced range throughout the current quarter, ending December 2025 at 47 days of supply, in line with September 2025. Market conditions are typically considered balanced when inventories fall within the 39-47 days of supply.

Canfor Pulp's average NBSK pulp unit sales realizations in the current quarter experienced a modest decline relative to the previous quarter, principally a result of the decrease in global US-dollar NBSK pulp list prices, partially offset by a 1% weaker Canadian dollar.

Pulp production was 103,000 tonnes for the fourth quarter of 2025, down 4,000 tonnes, or 4%, from the third quarter of 2025. Early in the current quarter, the Company successfully completed its scheduled maintenance outage at Northwood as planned. However, the restart of Northwood was delayed by several days due to operational difficulties unrelated to the scheduled maintenance downtime. Combined, these factors impacted NBSK pulp production by approximately 15,000 tonnes in the current quarter.

Operating income in the Company's paper segment was $5.5 million, compared to $5.0 million in the third quarter of 2025, largely due to the weaker Canadian dollar, combined with slightly lower paper unit manufacturing costs.

Pulp Outlook

Looking ahead, global softwood kraft pulp market conditions are anticipated to remain weak into 2026 as ongoing economic uncertainty, particularly between China and the US, continues to weigh on market demand despite some cautious optimism seen late in 2025.

Canfor Pulp continues to closely monitor developments in Canada-US trade relations. Should tariffs be applied to US pulp and paper shipments, the Company has mitigation strategies in place that are projected to partially offset potential impacts.

No major maintenance outages are planned at the Company's pulp mills for the first quarter of 2026. In the second quarter of 2026, a maintenance outage is scheduled at the Company's Intercontinental NBSK pulp mill ("Intercon") with a projected 20,000 tonnes of reduced NBSK market pulp production. For the rest of 2026, no further scheduled downtime at the Company's pulp mills is anticipated.

As announced on February 17, 2026, Management's forecast indicates that due to global pulp market conditions remaining weak, ongoing macroeconomic headwinds and continued challenges accessing economic fibre in British Columbia, the Company may experience continued declines in financial performance during the first quarter of 2026, making it highly probable that CPPI will not comply with its financial covenants at March 31, 2026.

Although Management is undertaking mitigation initiatives and advancing the Proposed Transaction, the ultimate success of these actions cannot be assured at this time. Management's discussions with its lenders regarding future financial covenant relief are currently on hold, pending the outcome of the Proposed Transaction. Should the Proposed Transaction not close, the Company would re-engage with its lenders for further temporary relief while it works to undertake a restructuring process.

Paper Outlook

Demand for bleached kraft paper, both globally and within North America, is anticipated to remain subdued throughout the first half of 2026. This forecast trend is primarily attributed to ongoing uncertainties in Canada-US trade relations, coupled with broader global economic challenges such as overcapacity and stable demand.

A maintenance outage is currently planned at the Company's paper machine in the second quarter of 2026 with a projected 10,000 tonnes of reduced paper production.

Canfor Pulp is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia. Canfor Pulp operates two mills in Prince George, British Columbia, with a total capacity of 480,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft pulp and 140,000 tonnes of kraft paper.

SOURCE: Canfor Pulp Products Inc.

 

SCA RoRo Vessel

SCA Unveils Plan to Reduce Emissions from Its RoRo Vessels in Sweden by 40 Percent

March 2, 2026 - SCA announced plans to implement changes to its sea transport using RoRo vessels (Roll-on/Roll-off) by reducing speed, increasing vessel load factors, and adjusting how the Swedish ports in Umeå and Piteå are used. One effect of these changes is that emissions from the vessels will be reduced by approximately 40 percent.

From 1 October 2026, SCA will change the structure of its vessel departures from Umeå. The changes apply to vessels where cargo is driven on and off on their own wheels, commonly referred to as RoRo vessels.

Currently, the vessels operate three times per week — twice to Kiel and once to London and Rotterdam. Under the new structure, there will be two weekly departures: once per week to Kiel and once per week to London and Rotterdam.

The change means that the vessels will operate at a slower speed of 11–12 knots, compared with the current approximately 15 knots. Furthermore, the vessels will have a significantly higher load factor for northbound cargo.

Southbound cargo that does not fit will be transferred to other solutions. This frees up time in the schedule, making it possible for vessels that previously only called at Umeå to also call at Piteå and the Haraholmen port area. There, the vessels will load production from SCA’s mill in Munksund and deliver recycled fibre and other goods in Piteå. The previous rail solution between Munksund and Umeå will therefore no longer be needed in the future.

“For SCA, this is an efficiency measure where, through smart logistics planning, we can reduce emissions significantly — an estimated 40 percent,” explained Magnus Svensson, Senior Vice President, Sourcing & Logistics at SCA. “This brings a direct benefit in the form of reduced emissions, but ultimately it also becomes an economic efficiency measure since new EU regulations impose a high and continually increasing cost on emissions from sea transport.”

The change means that around 550,000-600,000 tonnes of goods per year to and from the Munksund mill will in the future be loaded in Piteå. Together with SCA’s current sawmill volumes of approximately 300,000 cubic metres, SCA will become one of the port’s largest customers.

It also means that SCA is expected to load around 300,000-400,000 fewer tonnes in Umeå.

“Our presence in Piteå increases significantly, and this will of course create an opportunity for us, together with the port and ShoreLink, to further develop logistics from the municipality,” Svensson pointed out. “As for the situation in Umeå, SCA has growing volumes to and from the Obbola paper mill, so even though volumes from the Munksund mill decrease in Umeå, the net effect will not be that large.”

With headquarters in Sundsvall, Sweden, SCA offers packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions.

SOURCE: SCA

 

SCA to Increase Price for NBSK Pulp in Europe

SCA pulp baleFeb. 13, 2026 - SCA announced that it is increasing the price of NBSK pulp (Northern Bleached Softwood Kraft) in Europe by US $100 per ton.

The new price will be US $1,710 per ton, effective for deliveries and invoicing from March.

Pulp Market

In SCA's fourth quarter 2025 earnings summary, the company reported "average selling prices in the pulp segment decreased compared with the preceding quarter, driven by lower underlying prices and a weaker market mix. Market prices for NBSK pulp in the US and China fell slightly in the fourth quarter, while the market price in Europe remained stable at a low level. Demand for pulp was good in China during the quarter but remained weak in both Europe and the US. SCA's delivery volumes for the fourth quarter were higher compared with the preceding quarter and year-on-year. Global producer stocks were stable during the quarter."

SCA Pulp Production

SCA produces pulp at its two pulp mills in Sweden. The Östrand pulp mill has the capacity to produce 900,000 tons per year of NBSK, while SCA's Ortviken mill has the capacity to produce 300,000 tons per year of CTMP (chemi-thermomechanical pulp). The Östrand pulp mill is one of the largest and most cost-efficient production lines for NBSK in the world and is also a net producer of green electricity and produces biochemicals such as tall oil and turpentine.

With headquarters in Sundsvall, Sweden, SCA offers packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions.

SOURCE: SCA

 

Nippon Paper Resources Australia Forms JV Wood Chip Export Business in New Zealand

wood chips handlingFeb. 6, 2026 - Nippon Paper Resources Australia, a wholly owned subsidiary of Nippon Paper Industries, has entered into an agreement to jointly acquire all the shares of Marusumi Whangarei Company Limited ("MWC"), a New Zealand-based softwood chip production and export company currently jointly owned by Marusumi Paper Company and Marubeni Corporation.

The acquisition will be concluded in partnership with Pentarch Forestry, a diversified Australasian timber manufacturing and export company. Upon completion of the transaction, the planned shareholding ratio will be 70% for Nippon Paper Resources and 30% for Pentarch Forestry.

The share transfer is expected to be completed by the end of February 2026.

Following the acquisition, Nippon Paper Resources and Pentarch Forestry plan to enter into a formal joint venture shareholders' agreement and jointly operate the business. MWC will subsequently be renamed NP Wood Fibre Company Limited.

NP Wood Fibre will operate a major New Zealand softwood chip production and export business, leveraging off the country's abundant forest resources and positioning itself to meet the anticipated growth in global demand for softwood chips (Pinus Radiata) for pulp and paper manufacturing. The company will take over MWC’s woodchip handling facility at Northport (Marsden Point) in the Whangarei area of Northland, New Zealand.

For Nippon Paper Industries, the transaction supports the diversification of procurement sources and the establishment of a stable supply of softwood resource for the Japanese market.

In collaboration with Pentarch Forestry, NP Wood Fibre will also market softwood chips across the Asian market, thereby enhancing the revenue potential of the Nippon Paper Group's timber-related businesses.

Furthermore, NP Wood Fibre will combine the Nippon Paper Group's expertise in hardwood plantation management, woodchip production and export operations in Brazil and Australia with PF's capabilities across lumber, woodchip, and other timber-related businesses.

With the extensive sales and export experience of both NPI and PF in Australia and New Zealand, the newly established NF Wood Fibre joint venture is well positioned to fully leverage these combined strengths and to further expand the forestry and timber businesses of both partners.

SOURCE: Nippon Paper Industries Co., Ltd.

 

Canada - forest products

Task Force Begins Work to Transform Canada's Forest Sector

Jan. 19, 2026 - The forest sector is a cornerstone of Canada's economy and identity. For generations, our forests have supported communities and powered local economies. In response to ongoing trade pressures and the need to diversify and ensure long-term competitiveness, the Government of Canada recently announced the launch of a Canadian Forest Sector Transformation Task Force to identify pathways to restructure, retool and transform Canada's forest sector.

Today, members of the Task Force held their first meeting. Over the next 90 days, the Task Force will engage with industry, provinces and territories, Indigenous groups and labour organizations and will gather public comments through a web portal to be launched shortly.

The Task Force's work will focus on strengthening the sector's long-term competitiveness and sustainability, including:

  • Expanding modern construction methods, such as mass timber, modular systems and prefabricated building solutions, particularly for homebuilding
  • Supporting product diversification, including advanced wood materials and bioproducts
  • Strengthening access to domestic and international markets
  • Improving productivity through innovation, digitalization and advanced technologies
  • Retooling and restructuring the industry to position it for the future

At the end of the 90 days, the Task Force will deliver a report with recommendations to the Honourable Tim Hodgson, Minister of Energy and Natural Resources.

Members of the Task Force include Co-Chairs Ken Kalesnikoff, Principal and Director of Kalesnikoff Mass Timber, and Frédéric Verreault, Executive Vice-President of Chantiers Chibougamau, as well as:

  • Lana Payne, National President of Unifor
  • Lennard Joe, Chief Executive Officer of the BC First Nations Forestry Council
  • Don Roberts, Chief Executive Officer of Nawitka Capital Advisors Ltd.
  • Brad Carr, Chief Executive Officer of Mattamy Homes Canada
  • Jim Irving, Co-Chief Executive Officer of J.D. Irving Ltd., Kent Homes
  • Luc Thériault, Chief Executive Officer of Wood Products, President of Domtar Canada and Co-Chair of the Canadian Lumber Trade Alliance

The Government of Canada is supporting Canada's forest sector and the workers and communities that depend on it while advancing long-term transformation to ensure the sector remains competitive for the long-term.

Quick Facts

The Government of Canada first announced the creation of the Canadian Forest Sector Transformation Task Force on November 26, 2025, as part of new measures to support and transform Canada's forest sector.

Canada's forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous people, and contributing more than $20 billion to our GDP. New and innovative forest products, such as engineered timber, biofuels and forest product-based biodegradable packaging materials, are helping Canada reach net zero by 2050 and enabling more sustainable, efficient housing solutions.

SOURCE Natural Resources Canada

 
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