Nordic pulp & paper stocks slide amid warnings of weakening demand
12/04/2023 10:17
** Nordic pulp and paper stocks fall 1.9%-7%, with Jefferies
saying Metsa Board's METSB.HE profit warning on weakened
demand adds to an "already negative pulp sentiment"
** The Finnish forestry firm said on Wednesday the weakened
demand situation for market pulp in both Europe and China had
affected its Q1 results, and lowered expectations for comparable
operating result to EUR 89 million ($97.25 million)
** It said prolonged production shutdowns in Europe by paper
and paperboard producers and weaker-than-expected economic
recovery in China had hit demand, sending its shares down 7%
** Jefferies sees a negative read-across to European
pulp-exposed stocks, with Svenska Cellulosa SCAb.ST , Stora
Enso STERV.HE and UPM UPM.HE all falling between 1.9% and
3.6% in morning trade
** Jefferies also sees a blow to graphic paper and boxboard
makers due to weak demand, with shares in Holmen HOLMb.ST and
Billerud BILL.ST both down about 2.5%
** Stora Enso announced plans on Wednesday to close down one
of two paper lines at its Finland, citing weak paper demand and
high costs
** Also on Wednesday, Sweden-based Rottneros RROS.ST gave
notice to 24 employees at its Vallvik mill, citing falling pulp
prices and increasing costs
($1 = 0.9152 euros)
(Reporting by Greta Rosen Fondahn)
((Greta.RosenFondahn@thomsonreuters.com))