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Rayonier Sees Rising Cellulose and Paperboard Prices – Commodity Commentary

By on May 3, 2022 0

By Stephen Nakrosis


Rayonier Advanced Materials Inc. said Tuesday that demand for specialty cellulosics remains strong and paperboard prices continue to rise.


Cellulose:

Selling prices for cellulosic specialties rose by double digits in the first three months of this year and are expected to increase further, Rayonier said.

The company also said that “commodity selling prices in the second quarter of 2022 are also expected to increase from the first quarter as supply of down products remains limited.”

In the first quarter, high-purity cellulose sales were up 12% from the year-ago period and selling prices were up 17% from a year earlier, Rayonier said.


Cardboard:

“Paperboard prices continue to rise due to strong demand in the commercial printing and packaging segments,” Rayonier said.

“Price increases are expected to outpace increases in raw material costs in the second quarter, while sales volumes are also expected to increase.”

For the first quarter, Rayonier said net boxboard sales increased 12% from a year earlier, while selling prices increased 19% during the period.


High performance paste:

High-yield pulp markets remain positive and realized prices are expected to rise in the second quarter, Rayonier said. However, “costs are also expected to increase due to chemical and transportation costs.”

In the first quarter, net sales of high yield pulp decreased 21% compared to the same period a year earlier.

“Higher selling prices were partially offset by lower selling volumes, due to supply chain constraints and lower productivity, as well as higher input costs,” said Radiate.


Write to Stephen Nakrosis at [email protected]