Canada CanFor Pump Announced Production Reduction Or Impact On Pulp Futures

The devastating floods in British Columbia, Canada, have caused serious disasters. Due to the disruption of the supply chain, Canadian pulp producer canFor pulp announced a temporary production reduction of NBSK and BCTMP at Northwood pulp mill and Taylor pulp mill to deal with the major transportation problems encountered in British Columbia (BC).

The company reported that its pulp delivery had declined due to recent weather related transportation disruptions, but its production continued. Therefore, pulp mill inventory is close to capacity.

CanFor’s pulp production will continue to be cut until British Columbia’s transportation network can return to normal operating conditions and inventory returns to normal levels. The company announced that NBSK pulp production at Northwood pulp mill will be reduced by at least two weeks and BCTMP pulp at Taylor pulp mill will be reduced by at least four weeks.

Since mid November 2021, torrential rains for several consecutive days have caused floods and landslides in western Canada. Most of the road and railway networks were flooded and damaged, and smaller bridges partially collapsed. British Columbia’s transport minister called the storm “the worst weather storm in a century”.

CanFor pulp has four pulping plants with a total capacity of 1.1 million tons of NBSK and 220000 tons of BCTMP per year. Among them, Northwood pulp mill can produce 620000 tons of NBSK, while Taylor pulp mill is the only plant producing BCTMP with a capacity of 220000 tons / year.

Among the pulp futures deliverable brands announced by Shanghai Futures Exchange, Northwood pulp produced by canFor pulp is one of them.

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Post time: Dec-15-2021