Pulp prices remained strong in the past three months for Vancouver’s Canfor Pulp LP, leading to record sales for the company’s third quarter ending September 30.
The limited partnership, which is 49.8% owned by Canfor Pulp Income Fund (TSX:CFX.UN), reported record sales of $247.9 million and net income of $54.5 million due to continued strength in the pulp market.
The latest quarter results were similar to the second quarter as higher prices for pulp and paper offset lower shipments and higher unit manufacturing costs.
The company noted rising inventories in the market has resulted in a US$30 price decrease in North American markets to US$990 per tonne in September from US$1,020 per tonne in July.
Additional North American capacity was restarted in late-September resulting in a modest increase in supply. However, seasonal maintenance downtime in October should mitigate the increase. The company said increase has led to a corresponding decline in pulp price, which fell to US$970 per tonne in October.
Canfor Pulp Income Fund’s unit price range over the past week: between $15.56 and $16.85; 52-week high: $16.69; 52-week low: $4.80.