The company that owns the Celgar pulp mill in Castlegar is blaming weak markets for a $98.3 million loss in the second quarter of this year.
Year-to-date, Mercer International posted a net loss of $128.9 million. By comparison, it made $145.1 million in the second quarter of last year and $160.3 million in the first half.
“Our second quarter results were negatively impacted by the overall weakness in the pulp and lumber markets,” CEO Juan Carlos Bueno said in a news release.
“Lower pulp prices were primarily the result of weak demand for paper caused by weak economic growth and high inventory levels along with slower-than-anticipated market recovery in post-COVID China.”
He said hardwood pulp prices in particular declined by about 32 per cent during the quarter.
While the Celgar operation was not broken out specifically in the financial statements, the company noted a decrease in wood chips because of local sawmill curtailments. The lack of fibre led to a 10-day shutdown in the spring.
The pulp mill is presently in a month-long shutdown as a result of the Vancouver port strike, which made it impossible to ship inventory.
