Regular Pulp Prices are Still Risinghttps://www.paperage.com/foex/pulp.html
This bodes very well for Fortress Paper for three reasons.
1) As the profitability and price of regular pulp (NBSK & BHK) increases, the likelihood of traditional pulp producers switching to dissolving pulp production, decreases.
2) It puts a floor in the price of dissolving pulp since, as it decreases below around $1,600 per tonne, the benefit of conversion to DP will diminish significantly, and I suppose some DP producers might even switch back to regular pulp production.
3) Shows that one way or the other, one product or the other, their is tremendous potential and demand for producing any kind of pulp, in today's market.
Even the old Thurso would be making money, hand over fist today. The new Thurso, with their co-generation plant in operation and possibly a bio-refinery, to add to their 200,000 tonne of pulp production, would be a steal at $800 million to $1 Billion ($56 to $70 per share). The only downside to this, is that any new expansion will most likely cost more, as it would for all of FTPs competitors that might want to acquire Fortress Paper and/or their assets.