Cole Hathorn's questions to MERCER INTERNATIONAL (MERC) leadership • Q2 2025
Question
Cole Hathorn from Jefferies asked about the potential impact of US lumber duties on Canadian sawmill fiber supply and the knock-on effects for the pulp market. He also inquired about the relative profitability of Mercer's European versus Canadian pulp mills and the outlook for the German pallets and lumber business, including the possibility of energy rebates.
Answer
CEO Juan Carlos Bueno agreed that higher duties could pressure Canadian sawmills and tighten fiber supply, noting Mercer is well-positioned by sourcing fiber from the US for its Celgar mill. He described the European mills as highly competitive and profitable, with future value from bio-refinery projects. He sees a gradual recovery in Germany into 2026. CFO Richard Short added that no energy rebates are expected from Germany.