Rayonier expects 2-3% price increase on specialty dissolving pulp in 2013; Jesup conversion costs higher than expected


Rayonier said it expects prices for its specialty cellulose, or dissolving pulp, to increase by 2-3% in 2013. The firm also said the cost of a conversion project at its Jesup, GA, mill that will convert its fluff capacity to specialty DP, is expected to run 25-30% above the original forecast.

"As we look into 2013, we see continued strong demand for our specialty cellulose fibers. We expect 2013 specialty cellulose sales volumes to be comparable to 2012 and prices to increase approximately 2% to 3%," said Jack Kriesel, Rayonier's SVP of performance fibers, in a conference call with analysts on Jan. 24.

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