By Stephen Nakrosis

Cellulose company Rayonier Advanced Materials said raw materials and logistics costs are expected to rise for several of its product lines in 2025, while sales prices and demand are expected to be mixed.

On cellulose specialties:

The 2025 average sales prices for Cellulose Specialties are expected to increase by a mid single-digit percentage compared to last year, the company said, while sales volumes are expected to decline by a similar percentage. Demand trends will vary across product lines, the company said.

"Acetate demand remains soft due to elevated inventories and ongoing destocking in China, with added risk that customers may use the tariff-related pause in orders to further reduce stock levels. Ethers volumes are expected to improve, while other specialty grades are anticipated to remain strong given reduced global supply," Rayonier said. The company also said it remains cautious about further supply chain adjustments by certain Cellulose Specialties customers in response to tariffs.

Raw material input and logistics costs are projected to be moderately higher in 2025.

On cellulose commodities:

Overall fluff demand is expected to remain resilient, and its fluff products are subject to a 125% import tariff into China. "These retaliatory tariffs are expected to create a dislocation of supply relative to demand and the company anticipates a loss of market share in China as a result," Rayonier said.

Raw material input and logistics costs are projected to be moderately higher this year.

On paperboard:

Paperboard volumes are expected to increase in this year, "supported by improved certainty around zero-tariff access to the U.S. market due to USMCA compliance, reduced supply from European competitors impacted by tariffs and growing interest from the domestic Canadian market," the company said.

However, prices are projected to decline year over year, and costs are expected to rise due to higher purchased pulp costs, tariff mitigation efforts, and other factors, Rayonier said.

On high-yield pulp:

High-Yield Pulp prices and volumes are expected to decline in 2025 "due to continued oversupply in the Chinese market," the company said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

May 06, 2025 19:13 ET (23:13 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.