Q2 2023 Energy and NaOH Market Prices Analysis
After the "perfect storm" built up in H2 2022, first signs of
recovery in H1 2023, further improvements in H2 expected
Costs
Demand
Prices
Free Cash
Flow
-
H2 2022 a "perfect storm" in H2 2022
Unprecedented increase in
raw material and energy cost
across the industry
Overall decline in demand for
fibers in the textile industry
led to a decline of fiber sales
for Lenzing
Significant decline in
operating rates and prices in
line with declining business
sentiment
Capex for new sites in
Thailand and Brazil as well as
inventories build up with
impact on trading working
capital
-
H1 2023
Declining but still elevated -
energy and raw material prices
visible in current market
environment
Pulp (incl. co-products) and
nonwoven sales remained solid,
textile sales starting to increase
Fiber prices remain under
pressure, DWP prices stable
Capex decrease of >50% with
positive impact
1 August 2023 - 19
Expected H2 2023
Costs are expected to further
decrease, however at slower rate
Cost savings program expected to
further contribute
Stable demand in pulp (incl. co-
products) and nonwovens
expected, low visibility in textile
fiber demand
Expected market recovery with
positive impact on prices
Operating cash flow expected to
increase, capex with focus on
maintenance, trading working
capital expected to decrease
Lenzing
Innovative by nature
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