MERC - Earnings call transcript Q3 2024 | Mercer International Inc.

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Operator

Good morning and welcome to Mercer International's Third Quarter 2024 Earnings Conference Call.

On the call today is Juan Carlos Bueno, Mercer's President and Chief Executive Officer; and Richard Short, Mercer's Chief Financial Officer and Secretary. I will now hand the call over to Richard.

Richard Short

Thanks, Josh. Good morning, everyone. today. us joining for Thanks markets, I will highlights call financial operating into on Juan initiatives. our by the third touching the color of further the to the operations quarter and Carlos strategic and provide begin our before to turning presentation of Investors is we section our website. But turning that for of telephone, those today's results, by attached forward-looking statements conference making morning's to to be that that our will you Also, we remind I'd joined have have call this there material the you like to before in call. in harbor According to press to related your the in the Commission. Securities of with release safe to to XXXX, attention provisions these of statements, Reform Securities and I'd call our like and filings Litigation Exchange described company's Act which risks Private the are the the fully more

totaled in maintenance our benefit EBITDA million. by compared operating of planned moment. well days major planned The production our Juan The we days QX compared offset reduced partially several in a and in in have more weaker will to in Carlos our unplanned QX. quarter-over-quarter XX fewer exchange QX significantly QX's $XX fewer results downtime that improved quarter, $XX were QX driven about had XX downtime EBITDA of was unrelated as movements of foreign days unplanned as events of prices. million This unfavorable as days by and downtime pulp hardwood say to to

$X segment million. EBITDA million Wood our of $XX and negative of quarterly Our contributed had quarterly Pulp segment Solid EBITDA

both and SEC's. Form You in XX-Q can on find be our disclosures found the segment which website our additional can

softwood remain is seasonal demand, quarter resulting stable pulp of weaker in third typically period prices. The markets steady, a but

QX this QX. tonne increase price to was from price per current an coming of tonne by offset decreased tonne from averaged increase of market. per per in $XXX Our lower And $XXX will $XX average pulp QX. The prices tonne, China, NBSK of American NBSK price realizations realizations Europe, new were tonne require due absorbed per in in $X,XXX The the per net price list which the current $XX the be in North down QX. to quarter, sales in the compared was tonne, China online in per benefit $XXX largely in the where QX softwood a $XX averaged QX. Hardwood list NBSK decrease $X,XXX time in from some XXXX, to quarter, capacity

compared decrease and down tonne, per tonne, sales price average of hardwood China price increased eucalyptus price The list average $XXX North between QX at increased this impacted $XX us In $XXX QX a slightly quarter, the current million pulp QX tonnes, had XX,XXX maintenance price QX the in when tonnes, XX% the quarter, to production planned downtime incurred downtime of the production hardwood QX $X quarter the our upsets quarter. In Peace at negatively from current QX impact quarter, fiber our volumes in XXX,XXX softwood we total hardwood second in decrease compared in QX. Overall, by sales to EBITDA this up in average approximately $XX American no QX. production $X,XXX our third volume a approximately days weaker noncash mill. in in about from annual In third in roughly Our QX Today, planned when by to QX. offsetting to recording NBHK pulp realizations net downtime the the $XX downtime, with pulp. Total River have impact outlook million. being $XX days $XXX unplanned we positive with fewer tonne, inventories to but million, the impacted as days announced, a compared at current QX was of $XXX at the previously The total XX QX the had River as we from resulted hardwood was from slightly Peace of we XX per XX the XXX,XXX gap a QX. the impairment series of in a of days softwood estimate of were planned hardwood against adversely of about quarter pulp quarter down per of mill. mills, tonnes, downtime planned inventory unrelated

Wood QX $XXX Today, a XX% was increase feet in QX. feet, per #X price our price lower and $XXX is board in Random that benchmark compared around higher as remained in prices about Overall, Solid SPF by for were QX, The which per X,XXX #X in and the offset Western U.S. Europe. $XXX lumber lumber in markets board better U.S. slightly segment, to Western decreased For prices weak. better mostly for of prices represents X,XXX the QX. SPF beginning realized market benchmark Lengths average from

Lumber board the down up QX modestly For higher due fewer planned to QX. and from European QX in QX stronger Lumber due XX% U.S. QX markets were prices from reduced are the for demand volumes timing was and feet sales. production in supply. to to million XXX lumber due in expecting we maintenance XXX sales X% of QX, board million days feet,

about volume to Pricing compared turbine. totaled flat remained quarter, the QX, timber and at gigawatt timber QX to in sales was XX,XXX cubic Solid QX both QX at work U.S. in megawatt hour. In projects our XX of the $XX the XXX QX our supply maintenance largest Wood strong operations gigawatt planned Our Production down completed Friesau meters QX Wood two to hours as we Solid stable. was from in Pulp mass in hours for undertaken mass on segment's segments' per the were electricity due fiber costs consolidated compared ever flat as

dollar caused our Canadian by to the $X.XX net income of denominated primarily of of $XX consolidated QX about U.S. million to compared Foreign loss impact in for or impacted million mills. QX, million in $XX in $X.XX exchange cash dollar U.S. negatively million at QX German to in weakening loss our $XX $XX reported when of a receivables about a compared and consumed operating on our We by per third QX. per $XX or a million QX. We net share about quarter the share, compared

maturities our X price issued yield of of of on Our note the credit senior about net our years. transaction, $XXX notes cash proceeds balance from our million QX revolving million. capital, their and The additional million was week, by our senior worth a highlight adjustments, higher decrease XX.X%. XXXX QX At comprise borrowed $XX debt of to release, liquidity QX, were We I XXXX notes. extended million, to this we senior noncash And million $XXX $XXX undrawn then you may wanted to have million on a the $XX at this press and worst have in of XXX% notes of for of amount our working reduced and million we excluding an cash notes position but $XX seen the million. new and principal our did totals our in senior million of using by redeem $XXX we also by a additional $XXX this facilities. issuing that roughly hand revolvers. And by senior of end million recent $XXX In on have of principal $XXX roughly XXXX completing

XXXX. That for our my over on call will Finally, And turn overview approved made has record share XX, be dividend for now ends the quarterly $X.XXX Juan payments of XX, on December Board a per the shareholders December results. of Carlos. financial to of which I'll

Juan Bueno

Rich. over QX, $XX resulted Thanks, EBITDA million operations QX. in In our a improvement

by note business Torgau that had is QX. under and quarter, at in another higher European had achieve to believe consistent the $X of results. fully of about mills revenue I and pulp synergies Solid Once in year. our have that negative end we is million with benefiting capacity our to achievable. We mills annual mass estimate the beginning what moment. I we related regards to weight economy, we business. When continue increase this million end impact million. QX, struggling is this are Torgau's was to the our realize our $X business Torgau, and and be of generating segment, synergies synergies the of would certain a expect had our about we our reduced to of lumber able ramped operating the we of unrelated accomplished a up significantly expect which estimated our will Pulp However, expectations. we're annually. operation, am Wood more to almost EBITDA of strong although we we At still realized purchased synergies to With synergies, $XX million fiber are margins that say pleased a we showing in weak about in our up, couple we achieve to pallet $XX about optimization $XX million Unplanned to downtime downtime that within our timber results

million. completed that pleased us reduce we highlighted, $XXX and this Rich notes. the our our of to by recently have refinancing As senior am XXXX debt I to we're behind able

recognize allocation this forward. In important an to of we million do invested front. operations. roughly consequently, focus work QX, debt there our on $XX capital more we be reduction going is will However, strategy our And in

$XX million to and capital XXXX planned expected our $XXX announced, million. previously As between spending is be

both each restarted Torgau lumber strategy were of line for You project value these will provide mills. project. and last our added recall contemplated we the significant expansion sorting our of Spokane will projects as quarter, part that these and investment of Both originally

CapEx XXXX expect XXXX, a to Looking spend ahead the we to similar target to range.

to environmental continue and prioritize maintenance will CapEx. business, We safety-related of

pulp markets. the to Turning

with to Softwood the in in believe pricing which the hardwood the and dynamics. around landed softwood markets pricing have in early with supply-demand closure unplanned curtailments China. The in floor steady continues weakened happening demand in late regions XXXX. tightness reduced most that mills certain QX NBSK upward $XXX midterm, remain of the to price downtime NBSK along supply We fiber in of pressure due or permanent years, will will last a QX when are appears strong. for in in temporary combined X today Conversely, hold the quarter create creating at reduced all to

price historical Looking well is norms. Currently, historical this a both pulp hardwood levels price well believe China than supply-demand with drive is differences us the about fundamentals net difference to significant forward, price tonne. softwood grades We $XXX beyond closer tonne, X and while this be difference historically, the per the to for XXXX. will these difference $XXX between into difference in we will in the larger believe price that

important prices sales are pulp due is QX supplier's in pulp about of it unplanned Stendal production opportunity noted a to that think this we our due lost unplanned XX,XXX to approximately a production As week This XX% of across of lost a and today. cutter Celgar was roughly our annual error we all volume us reminder, downtime. unrelated. spread River, At that was Peace pulp was I and volumes. Rich equipment. downtime lost softwood to note pulp But new mills installing when given Stendal, represents for tonnes a where

We hydraulic to motor that digester root related which have the recently plugged. the was for failure being analysis to the ultimately Peace downtime led issues, digester River's a cause unplanned the mechanical completed concluded of

reality, Our mills unfortunate maintenance downtime a in facilities quarter. that in the but happened same this are all and it largely was complicated is

planned the in learnings maintenance teams in to digesters QX repeating incidents days but forward any we them we downtime River's fourth our already repairs. related in do as quarter, have not these applying incurred from move Peace are the always, themselves. We unplanned XX avoid major to As have from

in full will include XXXX We the schedule, have finalized Celgar their planned QX we to woodroom expect do not XXXX a maintenance take final that for tie-ins shut XX-day but our project.

starts projects small QX, In As interest Wood lumber results as strong to our back results, we of in business in held good due while referring and QX segment saw market earlier. weak strong Solid some construction highlights rates in one timber's the Solid overall housing slightly. large shift. And X Rich despite despite in pockets benefited the very sales mentioned, margin and segment improvement of Europe, mass Wood potential just pallet this globally realized of mass timber general. our The to weigh to it from price lumber operating the continue we weakened prices. completed was previously was U.S. impact QX on on High

announced QX the we which conditions, moderately market. the pricing lumber pricing U.S. U.S. expect to rate curtailments starting in a Similarly, up expect XXXX. some pricing to fueling pressure by improve European in meaningful part improvement the we are will industry of or improved in the near-term lumber in on tension. recently reductions European as latter dependent will Any expect We create believe long-term modest we the either recovery in be markets will upward the economic that construction be interest end led production

for optimize We low continue of are by sawmill Canadian forest the inventories, midterm. In XX% housing still supply-demand low curtailments, industry wood and potential the point will believe sits the continue lumber was environment being about strong of to of and the demand short-term positive projects the once stock, as markets U.S. their QX, products receive this large continue that sustained fires to inbound very interest mix to and the improve we to number our ready balance timber. meaningfully volume construction million timber pressure our our rate put fundamentals we to are current order taking lumber inquiries finding in in and demographics homeowners' for stability file of sold execute created business target to the the on mass sales Today, will in improves. Economic shortages this relatively many conditions. developers of our project at $XX mass

will the that to mass confident economic seen in aesthetic of in grow popularity building timber product remain at a to Europe. and this environmental, pace have allow we addition, similar In we what benefits

seasonality historical asset to we significant the well a American to normal American and growth recovery, for return broad have geographic shareholder economy we The to in price of particularly allowing $XX of highly and pallets to market $XX, market. the signs that economy without to levels, about as footprint to average production which take a offerings on expect of QX even begins on XX% this to large due Once average. product Germany. capacity. Heating We lumber profitable pallet in North Torgau positioned of in are pellet overhang due pallet to North the mass make range Today, the a were is market. Shipping for prices expected slightly $XX around gives value. that advantage timber prices would selling incremental capacity, pallets us weak European up competitive show to remain pallets this access roughly deliver entire are

QX expect as We winter to prices demand and in build increase customers modestly stocks.

it dimensional thesis the and also part will available mix As envisioned envisioned for by both strategic with reminder, as annually about the our Torgau's originally project you log addition more part planing and the Spokane high-return upgrades to volume the in-feed was system of a and CapEx meters product the remind capacity. cubic mill. have at This for mills. increase mill's from lam mid-XXXX, wanted stock. we the was and Ultimately, Canada, increase our on value-added as potential QX, process synergies. I projects significantly this processes. flat focused in steady this costs wood costs. In infeed chips supply feedstock a pulp to higher into mill's sorting costs source fiber This is in fiber River's lower woodroom will complete project Celgar is In and constant. fiber QX. Peace reduce overall and this the our the will be costs And able kept project mill kept strategy fiber check. cost sawmill Once quality project market of and Torgau of investment our to of restarted strategy maximize to also original investment Germany, of Spokane lumber U.S. our our XXX,XXX in were mill's

with we our am lignin expect extraction and our increase a pilot ahead, QX. I solid remain our plant stable business Looking ramp-up. to in in our slight wood new for business with pulp cost fiber pleased

elements, strategy, among the products perfectly business battery product product expect sustainable going will with in potential. The plan future business our be We're the commercialization the segment to strong for I our our expanding and align many green about adding expected and while share others. shareholder fuel-based near with that compatible economy as for this a believe this We the this into excited product circular growth and such as future. vision value. and to products involves are prospects development to product is according of foundation chemicals of profitable of this Our fossil fundamentals alternative adhesives with which this

As carbon mass will our wood the potential to potential reduction demand steel and XXXX lignin, reducing fossil demanding for carbon climate products products emissions, becomes form remain play is committed and sustainable the concrete lumber roles fuel like carbon-intensive for for significant change of transformative to products, We that very the increasingly timber, more pulp important believe substitutes and our in solution. products the be displacing products like green plastic world about targets construction or energy, packaging. Furthermore, part we the to and believe has industry.

our committed believe demand the in our In remain lumber world timber value of are closing, of and for remain dramatically emissions. long-term for we pulp its strong. that low-carbon reduce the on time, pulp company that increase We growth balance pleased bullish and in markets the to the fact, to carbon as businesses. In will fullness better solutions products softwood am I mass through faster looks

challenges Our are those of result unrelated operational recent were behind challenges and us. a as operational

steady We which are us well take operating and expecting XXXX, pulp segment QX of will from positioned to advantage into strong results pricing. in Pulp the leave

Regarding pallets pressure keep to on continue for our economic we to in weak Solid demand segment, expect conditions Europe. Wood

cautiously are XXXX. into seeing we signs and However, pricing about QX be lumber us optimistic that cause to in and demand

our we'll back I you. opportunities. Thanks to call cost-saving prudently we will turn and while continue remain and for the operator listening Finally, liquidity the for Thank looking our debt and manage reduction to on questions. initiatives focused for cash now will

Operator

Instructions] Cowen. comes Steuart from question first Sean Our TD [Operator with

Sean Steuart

next broader around free modest. cash we strong contributor, Any are comments still sales flow you if a it have had targets a would prospects fairly XXXX, is be like versus asset Even on broader thoughts on I your to cash First on your that that operating targets. sheet accelerate balance better environment any if and challenges deleveraging in question the look question flow transition? free might the is year deleveraging noncore targets? guess isn't advanced pulp deleveraging

Juan Bueno

is point for is foundation, focus strong especially you, in on as this Again, believe a on out, have EBITDA of that what the reduction is solid believe Thank the Yes, back medium that as well We next as Sean. you year foundation have the a year. we term. the softwood. for naturally we we following on improved debt

are As we call, the of XX% softwood. in in our mentioned sales

pressure, are be might therefore, is So softwood for foundations next And while we on there believe then. hardwood the under expectations for that still and following our for improved softwood strong. an performance year

asset that As as we're proceeding sales, end. on we earlier, announced process and proceeding we are good making sale Santanol with progress the of -- as we're far

a So obviously, source an missed? And that that we want always transaction. additional we're I look we're keep of to you anything on be able progress right of assets balance that that on complement cash the when to overall. I if will Rich, making making know, end. that portfolio don't But our conclude good we keep sure obviously, of

Richard Short

well, No, quite Carlos. it I Juan summarizes think that

Sean Steuart

I is normalized EBITDA Rich, looking there net a target, maybe guys or mean, environment a just you long-term to a follow-on. a in net to objective? towards whether as that cap debt are it's debt

Richard Short

of opportunities for as fullness we Juan EBITDA to reduction forward debt. think And not think Yes, happen well. there'll as debt obviously, the we Sean, growth this but just have I some is Carlos and to expectations for said, going X.Xx get as we net about want to be go overnight, in time, we

Sean Steuart

Okay.

on affect proposing Juan I guess, blanket question. any shipments the into how to lumber would strategy do were pulp administration that election. shipments be European U.S. Trump U.S. might around potentially, for Canadian win, your to well? you the and tariff have that the import thoughts and as the Second If Carlos, U.S.

Juan Bueno

don't Trump tariffs situation they We Yes, place Sean, will if a wins. obviously and in if that those that be be put will know obviously, knows be is -- we nobody monitoring how closely. actually dramatic yet will

to tariffs on U.S. the ifs exerted do of of lot obviously, is a part we a we But they So that that destined know were in lumber, what sentence. if

and we into that lumber U.S. goes we vary depending had the price have on of possibility different flow. the of conditions amount Now markets how supplying the

this it think In it. went I different quarter, been quarter, said XX%. had we a to about about XX%

other the quarter-by-quarter all fluctuates and it in So this depending we that is markets. conditions on see

in Now it's in say improvements important to market. seeing are Europe. U.K. the we seeing that We're improvements significant

more far before we've We done than shipments previously. exceeding what we've shifting that market recently with towards are volumes done what regular

down impact that posing were to So opportunity a there on guess go obviously, that construction certain is the are believe this their same we've point, expecting then rebounds, the continue think will everybody's this very and of own again, other construction come to everybody our under a that But to ourselves developed, other favor that should element in but on strain bit expectations dependent and end, of to we that which the to the demand not tariffs, the interest thought obviously, important put interest into being overall. Lumber and dictates think markets rates to markets we remind if around us if everybody Trump is rise gives U.S. But your Fed believe would results. And Harris there's that expectations it we I are ways important back to very some of as us down, that a will that. I obviously, interesting line are so that there it's I given regardless by or go believe, on a and being power rebound. continue accord, be the more for that that without of the rates do significant

we rebounding, the year. last had think we've lumber of have lack us year what offer housing, the prices that give that of elements than with far so aging confidence better the will this far are I housing construction critical or

I expectations will we think as prices be there's that even on. higher So move lumber tariffs, with

see. days of again, A that So ahead we're that And tariffs, good in there's we'll of lot confident us. equation. the ifs on

Operator

Markets. RBC comes from question Our Matthew Capital McKellar with next

Matthew McKellar

rates mass a couple projects? construction timber sense weighing that the what on evolves over is more environment space in North interest your of competitive seeing broadly, And for years? more you supply-demand are of how American elevated balance activity, With next

Juan Bueno

important timber gaining I by traction. very the say do product has wouldn't that competitive is to be And concrete is will Yes, market. question. because we that years. Matthew, steel. a obviously, believe proven continue and the it's Mass little little that overall And an pace growth year-over-year growth to forward XX% as in X of at carry that next excess to in

a every grows having So is for us capacity year that the on very given XX% a average acquire. that business strong able foundation to growth for been we've

penetration Eastern are are the border prone And the of the lot this across projects. certain mass the with used has work projects. of have border been of comes the certain entire all able little much in regions that little, around technology is see in Western ] that the amount different timber states, to by having obviously there are attract There knowledge to for we are a widely the the Now the in of coastal U.S. increasing the that people [ or Canada. states, America, it little and is growth this opportunity that U.S., none U.S. more that example, states to more little a regions, from North on not as been There from it. have by

that, $XX and we than increasing seen million some interest of when in still have projects. back Now an order the we is are previous months. the say at projects mentioned the it's in because call interest rates. what's earlier interest And in We we've the that these holding book this higher is amount that of

and quarters the advance, as in more projects. for end we participating So more up more quotations

from thing growing it's it's significantly, are even for waiting secure the that developers know so growing. And they we better further down though that to the that really can come projects. is So only is their rates fact is booming, interest that stopping that it financing market a for

end we 'XX believe going comes 'XX, capacity really that extremely an be believe is well be really, going to of 'XX mass 'XX, projects. The why 'XX. of busy repeat the a through demand that's So once kind served we U.S. timber do in almost is for year of that is to construction But

we're have capacity. we capacity of just and shift XX% said, one we our As using

that running have timber we do a This at deliver well than we assets lot So about invoice more X year, shifts $XXX invoiced projects. million we're in Last $XX we above mass million. timber $XXX can And today. of million. what these can mass year, going we to projects X deliver

So plenty But for in that space we that a the year, other is much we space with been provide. there XX% the this capacity, that limited ours. significant us. terms obviously, more for companies market in that's at know for for case their can per than of in is growth In longer, of growth market have opportunity again, the growing

Matthew McKellar

need of to could have for waiting are developed I of better those That's some until up to If really maybe What What commentary. moving we the great conditions start been just that. follow projects is but do terms see in rate think that relief? on do you forward? financing tipping point

Juan Bueno

lines, back but levels, what, that start and the there's they I yes, people mortgages historical between X% X% and a when if are reduction those think the or see rates clear to not low maybe down to come I now, I things think very around will when once really attractive X%-ish moving. reductions, very think or that's

we down, that why by the earlier. -- that expecting a And always to that's that's see rates come we impact. believe will are time you second in Even that the the construction of lag. if always and believe more actually see 'XX a have than half why we interest there's So lag

Operator

next Our question comes from Cole Jefferies. with Hathorn

Cole Hathorn

divergence a commentary in bit stability of that there's an footprint are you seeing that's uptick markets players because follow around bit similar in on demand for I'd the a up Nordic European just in probably lumber of some calling Stora like more between pricing. your Enso well, to of the uptick then to and as a calling got Germany similar an and bit about a of a

kind on the give seeing strength to and just the fiber you're wanting know, you a first then is Canada, little a to costs differences Europe is what's regionally, driving seeing. feedstock as some rather your there regional you Could your that more well please? in one. And perspective seeing in are second color pulp cost than So are your bit what sawmills from mills on the of you the as

Juan Bueno

Cole. Absolutely,

basically as the demand the that As far question, from uptick in U.K. coming first is we see the

So recovery would -- good be time. indicate that a that we market longer a where good period that sustained have seen this is that pretty signs for the and of

market into that to very have nicely where precisely, their your the we fit and we that is point, quality products is that So demands. serve where

far the There's we able acquiring for the highest U.S. a able bring able from close are costs, quarter. differences year in running. to On of doing amount the River, U.S. average the strategy there's we the flat to the BC. them, Peace a border, from to of mills, behaving due we to were both the to obviously, Canada, the the this that average, so U.S. but in escaping about prices. In we overall suppliers is thanks of long-term one in bit We've us. we're that behind the ourselves market case thing as case And from Germany. to being when of fact that dynamics different so our woodroom fiber contracts wood been close that versus that look cost benefiting how ago have case fact border. And little been BC fiber at we is is wood -- We're on we of chips reduce the our sourcing our with by relatively Canada quarter have regions last Celgar versus implemented in the from the we have in across Celgar, the As different see costs that situation in the fact been

we of that the the that out think have way than been aspects is to that's more Scandinavians the and fiber hear those we what So to of In balanced from on we have fact even they're on very and there's are Well, buyer for in I make very the able the but are fiber wood that actually BC, have have bring I structured overall think that to flat from Germany, higher. around Holz very just -- nicely. In and case saw a when U.S. company the further Europe. factor in our it's that only especially hold that's strength being though out prices mills more this our we fiber our fiber last inflationary buyer very, effect the in Holz, increases Europe, increased this this of we sure as sawmills news other dynamic. the have Mercer the countries off countries Germany in compared a back obviously, costs because case, very because in or present, been the in the counterbalance unfortunately. being paying in in Europe, some Europe, the without biggest to there there, obviously, wood have key Russian And established ripple But frequently, anything quarter. And from how overall closed different to opportunity from else. we the competitive we impacted, Mercer neighbor of, obviously, not prices it's are the logistics us higher that in that being we rest there's wood into

key in think impacted been more that, the way not that way set others that Holz up been of by being us again, has the are way much what we're the Germany, Mercer I suffering dearly. has structured

Cole Hathorn

cost kind order Europe on your UPM seeing you am in better your with have softwood, mills relatively bit too of because curve those steeper And fiber And maybe cost Fibre increased incomings, books to are like, your, and because reading not I'll to and in taking that or benefit? up position costs that taken competitors that that that recently, are just downtime of you downtime cost seeing much better really seeing Meta point commercial follow relative are the we're stage, with position at in nervous really the I that? people due

Juan Bueno

and to XX% the I majority European vast all most with tissue, other XX% XX% printing is and large business in tissue. whether is the writing. we contracted do those for would of it's about have, goes in say of pretty specialties About of And to I under volumes. our and about We companies what mean, contracted volumes

mills and are our So most already contracted running that out. volume of is flat

very managing that end than everything there's are with mills, levels we're very, more inventory, being the that So German The inventory -- not to we year going believe which low. sold. both produce small. We that we're of in is days up XX very, is very

is seen, curtailments, others with softwood impacting last pulp both permanent is that are of see, that issues. downtime we've a bay. That's we And than I'm recent taken from relate significant more there is in and of what's XX It's the pulp this prices that what's gap Finland se. closures this anymore. going recent not of overall. The from volumes to or we curtailments months, in $XXX that what closures prices why benefit our not not amount impacting between those these as that's softwood softwood year we demand or And What necessary not you amount in more per very -- that's in at times, that prices that keeping the see issues keeping benefit we down. the have times of have softwood. had Canada is again, prices So hardwood from see there. than capacity and we and away, And going

we price maintain overall. flat So running the that relate it's helping see the where benefit you out. that's precisely that And price issues to in mills that those because, are are softwood very our healthy again, a see we

Operator

CJ comes Baldoni with Instructions] from Our [Operator Principal. next question

CJ Baldoni

by what the a looks was BC the given longshoremen wondering like the strike there's just a might strike XX-hour It I'm be port. notice in implications some extent the there. to that of

Juan Bueno

that the came July any is prepared ports. CJ, What since Yes, we've the and announcement been -- disruption. that out And way following we from a we've was took we consequences we obviously, of to the yesterday this I strike since make tackled it not this necessarily suffer month strike, if that of think there sure measures any would was strike, the risk was a we August, in a any there when from it. already

Bs materials, So around case around in issues. Those for inbounds, logistics alternative same thing already issues same logistics lined those put The in terms assessed. plan up of in those our motion. arranging have were in we having were terms properly and outbound of raw

did that, the we then planning think we're I back of were that in we thinking strike So for that August, well very did maybe when prepared. And we a X-week extension. kind

or we're events. for planning contingency keeping So plans again, conservatively these

government up what I we be as end anyway, are from important But this short-lived and economy is they the will intervening. our entangles. Let's will the one were since these for whole, prepared would as so Hopefully, a see big assume the thing least end, at disruptions needed.

Operator

Juan call to would turn Carlos closing remarks. the you. Thank I over to any now back for like

Juan Bueno

Okay. one Rich all call we Thank available for call. again to for you so Otherwise, more thanks Bye of and are February. forward I talk in time, you, any our at to to to don't you look earnings Josh, and us. our to next speaking joining hesitate now. on call

Operator

This you. the for concludes you Thank conference. participation. Thank your

may disconnect. now You

Mercer International (MERC) 1 Nov 242024 Q3 Earnings call transcript