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Metsä Group reports “stable demand” for tissue in 3Q results

Metsä Group has reported sales of €4,183m compared to €4,290m in the same period a year earlier in its third quarter results.

The operating result for the group was €342m compared with €635m in 2018, whilst pre-tax results were €298m compared with €576m.

The company said that prices of long-fibre and short-fibre pulp in Europe declined by 13% compared to the previous quarter.

In China, the price of long-fibre pulp declined by 15% and the price of short-fibre pulp by 24%.

President and chief executive Ilkka Hämälä said: “Metsä Group’s third quarter result weakened, as expected, compared to the previous quarter.
“The price level of pulp in Europe continued to decline as a result of China’s lower price level.

“In China, the prices of softwood pulp were stable during the third quarter and took a slightly upward turn at the end of September as softwood pulp inventories approached their average level, and as a number of producers announced production curtailments attributable to the market situation and technical reasons.”

This year, Metsä Tissue announced its plan for a next-generation tissue paper mill in Mariestad, Sweden, and the start of a related environmental permit process.

It said demand for Metsä Tissue’s products “remained stable” and the decline in pulp prices improved the company’s result, along with the reorganisation of the business carried out during the first half of the year.