Mercer International (MERC, Financial) is one of the leading producers of NBSK (Northern Bleached SoftwoodKraft) pulp which is used in tissue paper and of lumber through its wood products segment. The company started to see improved pulp market dynamics in the quarter with increased prices and production volumes. This has been driven by improvements in global economic activity, especially in China. Mercer’s wood products segment reported record results in the quarter as it benefitted from continued strength in lumber pricing because of robust housing demand. Management remains cautiously optimistic about these improvements but is concerned about global logistics challenges. So far, these appear manageable.
From Keeley Teton's Small Cap Dividend Value Fund first-quarter 2021 commentary.
