Sappi, the world’s largest manufacturer of dissolving wood pulp, is optimistic that conditions are improving in its fourth quarter to end-September, but doesn’t expect a full recovery until at least 2021.

The group expects sales volumes for its main products to be about 70% to 75% of 2019 levels in the last three months of its financial year, CEO Steve Binnie said on Thursday, but believes demand hit its floor in late May and June. The group expects a full recovery in dissolving wood pulp demand early next year, but demand for graphic paper may only be about 85% of what it was in 2019.

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