Good afternoon, everyone, and welcome to the presentation of Metsä Board's results for the fourth quarter and full year of 2020. My name is Mika Joukio, and I'm the CEO of Metsä Board. Together here with me, I have our CFO, Jussi Noponen, and Head of Investor Relations, Katri Sundström. As always, let's first take a look at the main events of the fourth quarter. Good demand in paperboard continued during the quarter, and delivery volumes decreased only slightly from Q3 levels. This development is normal due to seasonality. The pulp market was strong, especially in China, and demand was on a good level. Metsä Board's market pulp deliveries grew clearly from the levels of previous quarters. Prices of market pulp increased both in China and in Europe. Our material production efficiency was at a high level, which reduced production costs and improved profitability.
The comparable operating result was EUR 65 million, roughly at the same level of Q3. The amendment of the environmental permit regarding the renewal of Husum Pulp Mill was finally approved, and we made the final investment decision on the renewal's first phase. One of the major events during the quarter was the sale of a 30% stake in the Husum Pulp Mill to Norra Skog. I will go through this in more detail in my next slide. The board proposes a dividend of EUR 0.26 per share, which corresponds to a 54% distribution of our net result. In December, we announced that we had agreed to sell a 30% of our Husum Pulp Mill to Norra Skog, a Swedish forest owners' cooperative. This deal ensures the long-term availability of certified Swedish pulp wood for Metsä Board.
In the coming years, less wood will be imported from the Baltic countries, which decreases the mill's cost volatility and increases the certification level of purchased wood. With this transaction, our net debt decreased by approximately EUR 260 million, which makes us basically a net debt-free company. It will also decrease our financing share in the second phase of Husum Pulp Mill renewal by approximately EUR 100 million. The released capital will be used to further develop and grow our paperboard business, of which we have already made announcements. The transaction was closed on the 4th of January, meaning that its impacts will be included in our financial reporting as of the first quarter results 2021. Before going into the financials, let's have an update of the impact the coronavirus has had on Metsä Board's operations.
The top priority in our operations has been to ensure the safety of our employees, prevent the virus from spreading, and secure the continuity of our business, and I think we have succeeded well in achieving these aims. We have avoided infection chains among employees, and our deliveries have continued without disruption during the pandemic. The annual maintenance shutdowns at our mills have been carried out successfully. Actually, the production efficiency at our mills has been during the year at the high level, and we have achieved several new production records. The impacts of the coronavirus on paperboard demand have been mixed. We have seen strong demand in food, beverage, and pharma packaging, whereas segments like luxury packaging and graphical end uses have suffered. Also, the decreased movement of people in public places reduced demand in fast food end uses, especially in the early stage of the pandemic.
Despite the challenging year, our total deliveries grew from the previous year and exceeded 1.8 million tons. Also, the Q4 volumes were a bit higher compared to the corresponding quarter last year. Seasonality had a small negative impact on the fourth quarter's volumes, as always, and on the right-hand side, you can see the typical end uses of our paperboards. The majority of our boards go into food packaging or various retail packaging solutions, then the paperboard sales development by region in 2020, starting with our biggest market, EMEA. In Folding Boxboard, we saw good demand throughout the year, driven by the increased need for food and pharma packaging in particular. In uncoated white kraftliners in Europe, there was some oversupply in the summer, and we adjusted our production accordingly.
However, demand picked up towards the end of the year and has remained at a good level in the beginning of the year. The average prices of paperboards decreased slightly year on year. Americas performed well last year, and our total delivery volumes in paperboards grew by 12% from 2019. The total delivery volumes were 484,000 tons, close to the targeted level of 500,000 tons, which we set in 2016, along with the Husum Folding Boxboard expansion. Average selling prices of paperboards remain stable in local currencies. In Asia-Pacific, the volumes mainly in Folding Boxboard decreased year on year. Sales declined slightly from last year, mainly due to lower market pulp prices. Higher delivery volumes offset the negative impact somewhat.
The comparable operating result in the fourth quarter improved by 65% compared to the corresponding quarter last year, and full year operating result by 20% compared to 2019. I think this is an excellent achievement considering the exceptional circumstances last year and the strike in Finland at the beginning of the year. And here are the positives and negatives impacting profitability. First, the Q4 2020 versus Q4 2019. The Q4 result was improved by lower costs, especially in the paperboard business, higher volumes in market pulp, and positive impact from currencies. And for the full year 2020, the largest single positive effect came from lower production costs. Cheaper pulp improved the profitability of the paperboard business. However, we need to remember that taking into account Metsä Board's surplus in pulp, the overall impact of pulp on profit was neutral.
In addition, wood, energy, and other raw material costs were lower year on year. On the negative side, we had lower market pulp prices, which obviously impacted negatively on the result share from Metsä Fibre. And the Finnish strike, which took place in January-February and lasted for over two weeks, had a negative impact of EUR 20 million on our operating result. Then to market pulp. As already mentioned, Metsä Board's market pulp deliveries grew year on year by a total of 13%. The main growth came from China, where increased economic activity supported paper and paperboard production in particular. At the same time, global pulp supply decreased due to the maintenance work and extended shutdowns carried out by pulp producers. Also, the container shortage in traffic between Europe and Asia tightened the market, and the pulp prices started to rise.
Prices have continued to rise in the beginning of this year. Good earnings performance boosted the return on capital employed to our long-term target level over 12%. In Q4, the return on capital employed exceeded 14%, and for the full year, the return was 12%. Our balance sheet remained strong, net debt at EUR 235 million and leverage at 0.7 at the end of the year. The transaction with Norra Skog in January will further decrease our net debt by roughly EUR 260 million. Operating cash flow in the fourth quarter was EUR 84 million and free cash flow EUR 33 million. Q4 cash flow was affected by an advanced tax payment of EUR 35 million. Throughout the year, we have witnessed a good cash flow development.
This, combined with the strong balance sheet, provides us with a solid starting point for the development and growth of our paperboard business in the near future. In 2020, our total investments were EUR 166 million. In addition to the ongoing investments, the investment amounts for 2021 and 2022 depend on the decision on the planned investment that I will be talking about next. But to give you some guidance, a total of EUR 400 million- EUR 500 million could be invested by the end of 2022. And now, let's have a look at what we have in the pipeline. Starting from the Husum Pulp Mill renewal, in Q4, we made the final investment decision on the first phase of this investment, the new recovery boiler and turbine. The erection of the steel frame is ongoing, and the construction of the recovery boiler will start next.
The expected startup of this EUR 320 million investment is estimated in the first half of 2022. The second phase of this investment consists of a new fiber line, which will be decided on and implemented during this decade. We have started preparations for the environmental permit process, and the application will follow later on this year. In order to continue profitable growth together with our customers, we need to increase our capacity. The high utilization rate of our current production capacity is a limiting factor for future growth. So, three weeks ago, we started a pre-engineering project for increasing the annual production capacity of the Fold ing Boxb oard Machine, Board Machine number one in Husum. The annual capacity expansion would be approximately 200,000 tons, which is roughly 50% on top of the current capacity.
We expect to make the final investment decision this summer, in which case the ramp-up of the new capacity would take place in 2023. This project would strengthen our position as Europe's leading producer of Folding Boxboard. We'll replace the old pulp mill in Kemi, which annual capacity is 620,000 tons. The total investment value is EUR 1.6 billion, and financing consists of Metsä Fibre's own cash and debt. Total pulp capacity, 1.5 million tons per annum, includes the unbleached pulp used by Metsä Board. More about that on the next slide. Enabled by Metsä Fibre's investment decision of the new bioproduct mill, we are launching a development program for our Kemi Paperboard Mill, which already produces premium quality white top kraftliner. The program will include a series of bottleneck investments and renewal works of the board production line.
It also includes purchase of the unbleached pulp production line from Metsä Fibre in 2023, once it has been modernized. After these actions, Metsä Board white kraftliner capacity will increase approximately by 40,000 tons and pulp capacity by 180,000 tons annually. All in all, investments in Kemi by Metsä Board and Metsä Fibre will increase Metsä Board's annual surplus in pulp by roughly 325,000 tons. The total investment value is EUR 67 million, and it will be divided between years 2022 to 2023, with the highest wave of 2023. The development program is also a significant step towards the company's ambitious 2030 sustainability targets. The water consumption produced by paperboards at Kemi board mill will be reduced by roughly 40% and energy consumption by roughly 5%. Then to the outlook.
In the first quarter of 2021, our paperboard delivery volumes are expected to grow compared to the fourth quarter last year. In white kraftliners, the market situation is favorable both in Europe and the U.S., and we see a possibility of some price increases. In folding boxboard, we expect prices to remain stable. As always, the first quarter is practically a maintenance-free quarter, which supports profitability. Increased economic activity and further the second quarter results. The negative impact on first quarter versus last quarter last year is roughly EUR 8 million . Based on this, we expect that our comparable operating result for the first quarter will. The pandemic. Our profitability improved, we generated a strong cash flow, and our volumes increased. The sale of a 30% minority stake of Husum Pulp Mill to Norra Skog made us practically a net debt-free company.
This, in turn, provides an excellent platform to grow our core business, sustainable and high-quality fresh fiber paperboards. There we have already taken actions. We have started pre-engineering for increasing the annual Folding Boxboard capacity in board machine number one at the Husum Mill in Sweden by roughly 200,000 tons. Also, along with Metsä Fibre's investment decision of the new bioproduct mill in Kemi, we launched a development program in our Kemi paperboard mill to increase annual white kraftliner capacity by roughly 40,000 tons. The first phase of the renewal in Husum Pulp Mill is progressing, supported by the final investment decision made in December. We have already started the preparations for the second phase. This project will have a significant contribution to our target of fossil-free mills by 2030.
So many positive things are ongoing, but at the same time, the coronavirus and vaccination progression still creates uncertainty. Our top priorities will remain on securing our employees' health and safety, ensuring the business continuity, and preventing the virus spread. And by this, we are now ready for your questions. Please go ahead.
Thank you. If you wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question at any time, you can press zero two. There will now be a brief pause while questions are being registered. The first question is from Antti Koskivuori, Danske Bank. Please go ahead. Your line is open.
Thank you. Good afternoon, all. I would actually have three questions. I'll just shoot them out all at once, and we'll take it from there. The first one on kraftliner prices.
We've seen some EUR 50 per ton increase announcement in the market. How do you see the kind of pricing situation for kraftliners at the moment? And also, what kind of assumption have you baked into your guidance? I think you said slight increase in kraftliner prices in Q1. Then secondly, on the kraftliner capacity increase in Kemi. So just to confirm, maybe I missed it, but is the plan to increase the capacity by 2023? And also, if you could comment on the expected ROSI on the 67 million investment. And then lastly, on input costs in 2021, because there seems to be signs of inflation picking up. Now you guide energy prices to increase in Q1 and the rest of the input costs to remain flat. Should we anticipate kind of inflationary pressures also for you in 2021 as a whole? Thank you.
All right.
Starting from the white kraftliner prices, we have announced price increase of EUR 50 here in Europe and then $50 in America, so in the U.S. market. Depending on the market, we see the increases then sometime during the first quarter. I would say around February or latest March. It doesn't necessarily go fully through that 50, so it's a bit lower figure, but that's our, so to say, timetable with white kraftliner prices. This Kemi new capacity, yes, it's coming on 2023, so when this main investment or when the startup of the new bioproduct mill will take place. This 40,000 tons will then be seen after that. We don't announce the kind of return on capital employed over projects. I mean, the company target is this 12%, and that's it.
And then the costs, I would say that as far as the first quarter is concerned, the whole year is pretty much similar, at least at this point, that we don't estimate any kind of major increases. Preferably, I would say that the chemical prices and so they are pretty stable concerning the whole year. At least that is the situation at the moment, how we see it.
All right. Thank you very much.
Thank you. Next, we have a question from Robin Santavirta from Carnegie. Please go ahead. Your line is open.
Yes, thank you very much. Just maybe a follow-up on the cost side. If you look at 2020 and the paperboard business, the profitability improved quite significantly, especially after the strike in Q1. What are the main reasons it seems as the cost sort of side is down quite significantly?
So what are the main sort of reasons for that? And then in terms of the paperboard business cost outlook for 2021, you say, I guess, roughly flat input cost outlook at this stage for the full year. What is the lag if you see prices of pulp wood starting to increase, for example, in the summer in Sweden and Finland? So when is that seen in your P&L?
Okay. So starting, I mean, the main contributors concerning our profit improvement, of course, is the higher volumes in paperboard, as we have estimated. And then also this positive price development in pulp, of course, that will clearly have a remarkable positive impact on our results. And that's simply the kind of how we see it at the moment.
Of course, then we need to remember that from currencies, from FX, there will be a clear negative impact as far as this year is concerned. But I'm very optimistic and positive concerning the whole year. And I do not see any major threats in cost side, whether they are chemicals or other raw materials or wood at this point. At least we do not have any signs of that.
All right. And then the time lag, if you see increasing pulp wood prices, for example, in Sweden in the summer or after the summer, what kind of lag do you have? Is it one quarter, two quarters before it's bolstered the P&L?
So what do you mean by lag?
If the lease prices of pulp wood increase, I guess, first of all, you have some kind of inventory, and secondly, you have some agreements on your wood purchases in these markets. So what kind of sort of dynamics do you have in the wood purchases and the pricing?
So of course, now when we have this Norra deal, that, of course, helps our wood procurement clearly. And I repeat by saying that we do not see any kind of major negative impact coming from wood side, whether it's Finland or Sweden.
All right. Thanks. And then another question related to paperboard. You said during the Capital Markets Day that there's a possibility that this pandemic could have some structural sort of positives in terms of demand dynamics for you guys in paperboard. What are you seeing now? We're four months in now.
Is it sort of a cyclical recovery, or do you see some structural positives as well with, for example, fiber-based packaging replacing other materials at the moment or this year?
Yeah, I would say that the situation is pretty much similar as kind of three, four months ago, so we haven't, of course, there are differences between the segments, so food and beverage and pharma sector is doing fine, and then, of course, the graphical end uses and then luxury packaging, it's a bit kind of worse, but in general terms, our order inflows are good, and last year, we ran full except the strike, and no reason to believe that that wouldn't be the case this year either. Of course, you never know what happens to the global economy if this kind of pandemic goes on and goes on. That's another story.
But at the moment, the demand is good, and the order books are healthy.
All right. Thanks.
And the situation in white kraftliners is now better than, for example, last summer.
For sure. That's probably more cyclical construction. But finally, two technical questions. What was the CO2 allowance-wise sales gain you got in Q4 last year? And what is the amount of CO2 allowance-wise that you received for this year? The price is up quite significantly, so that probably has an impact on earnings this year as well. And then secondly, related to maintenance, what was the earnings impact in Q4 from the maintenance shutdown you and Metsä Fibre had?
Okay. Jussi Noponen, we'll take this.
Yes. Good afternoon. I can take the emission allowance question at least. So in the fourth quarter, we sold worth about EUR 6 million.
And the new surplus for this year is still unknown, but at the year end, we had about 800,000 tons of surplus from earlier years without any new surplus from this year. But there will be a surplus also from 2021.
Okay. All right. And related to the maintenance, can you give some kind of.
So the question was Q4. No. On. Q4 versus Q1?
Yes. Yes.
Of course, in Q1, this is practically maintenance-free. But comparing last year Q4, we don't have the figure exactly here, but it is a substantial positive.
Thank you very much and a good day to everyone. I just want to have a couple of confirmative answers, hopefully, around the financing of the Kemi bioproduct mill. So do I understand it right that there will be no equity injections from Metsä Board side? If you could please confirm that.
That's correct.
And also.
Yeah.
Confirmed.
Confirmed. Excellent. And also in that context, over the past couple of years, Metsä Board has received dividends from Metsä Fibre. What's the proposal for 2020? You'll see here. I can take this one.
So Metsä Fibre's net result from last year was slightly negative, so they are not proposing a dividend from last year.
That makes sense. Thank you. And then on your own CapEx, maybe I missed that, but what's your CapEx guidance for 2021 full year? And if you could please break that down, how much is maintenance, how much is expansion? And also, Mika, you did give some rough guidance on CapEx for the next couple of years, specifically on the planned Husum paperboard project. What CapEx are you expecting for the 200,000 tons of additional folding boxboard capacity?
Yeah.
Concerning then the CapEx this year, it's too early to say anything because that really, I mean, the impact then coming from the possible board machine number one rebuild or new capacity is still open. It's very difficult at this point to estimate. We will come back to that when we have the figure. We don't have that figure yet. I think maybe this is a disappointment as far as the answer is concerned, but we can't say much more at this point.
No, that's fair enough. I'm just a bit curious on the Husum investment. Is it so that you are looking at quite a broad range of potential projects, or is it so that you know already now that if you go ahead, this is the amount of money fairly precisely that you're expecting to be spending?
That's precisely what we are doing at the moment. So of course, we have a rough figure in our mind, but we want to get a kind of more exact figure, and that's what our development people, technical people, are doing at the moment. So you are right.
Okay. That's fine. And then also on your net balance in terms of pulp exposure, could you please give an update on what you expect for the full year 2021 in terms of net pulp balance? And also you stated today that assuming a successful startup in 2023, you will get an additional 325,000 tons of indirect pulp exposure. Could you share some of your thoughts around that? I mean, what's your targeted net pulp position? Should we expect some changes in terms of that once the Kemi pulp mill is up and running?
Yeah.
So now the situation after Norra deal is that our pulp position is 400,000 tons long. And then after this Kemi, I mean, Metsä Fibre investment as well as then our ownership of the unbleached pulp line, then the additional capacity will be 325,000 roughly. So then after this Kemi implementation, whether it's Metsä Fibre or Metsä Board, then we are ballpark around 700,000.
And then a positive investment decision on the BM1 expansion would then take it back down a little bit.
Yeah. Right. Fair point. But is it your thinking that this is something that you want to keep options open, or should we expect you to make, I don't know, reduce your ownership in Metsä Fibre beyond the startup, or what's your general thinking around that?
The general thinking is still the same as last time we discussed about this.
So I mean, all the options are, of course, open and possible. So nothing is carved in stone as far as the ownership of Metsä Fibre is concerned. But at the moment, we don't have any plans to change. But of course, it can be an option in the future.
Thank you very much.
Thank you. The next question comes from Harri Taittonen from Nordea. Please go ahead. Your line is open.
Yes. Good afternoon. And congratulations on getting the investment program going on the board front. Just sort of more questions have been asked already, but on the sort of cardboard or on the pricing, I've understood that the pricing picture might be a bit sort of stronger in the U.S. I'm just wondering if you have any kind of insight to that, the potential to sort of see your prices linked to the potential strength over there. Okay.
I already mentioned the white kraftliner prices in the U.S. We have announced price increase, and then it remains to be seen how much goes through. Expectation is that sometime in February, latest March, we will see increase there. As far as folding boxboard in the U.S. is concerned, we have announced price increase already in the beginning of this year, and it should be valid sometime also in February, latest March. Both folding boxboard and white kraftliner prices in the U.S. market are. We have announced price increases.
Yes. I guess the folding boxboard will be sort of linked to the success of the solid sulfate price movements in the U.S. That will be the driver.
That's right.
That's good. Yeah. Excellent.
And the FX impact for Q1, I understand it would be something like sort of a high single-digit number, maybe negative compared to the Q4, I mean, given the hedges postponing the impact from half a year ago. So is that more or less the kind of quantity?
Okay. Jussi will take this.
Yeah. So the first quarter, 2021, versus fourth quarter, 2020, will be about EUR 8 million negative.
Exactly. And then there will probably be a bit more in the scond quarter versus Q1 at the.
That's correct. Yes.
Correct. Yes. Yes. And maybe, I mean, you started with a lot of projects going on.
was just wondering. I was checking if there's any development on any of these sort of at the Husum kind of investment involving that sort of increasing use of sort of changing the barrier materials, kind of if there's sort of movements to the sort of bio-based and sort of replacing PE. And is there sort of developments in that side running on parallel with all these other projects?
Yes. We have launched this new Eco-Barrier roughly a bit more than a year ago, and that sales has developed even though the circumstances are difficult concerning the trials, etc. But there has been good progress, and I'm positive concerning that particular product. But of course, then in addition to that, our target is to develop additional barrier products also in the future, and that work is ongoing at the moment.
But this Eco-Barrier that we produce at our Kyrö Mill in Kyröskoski, that business has developed quite okay.
Okay. Excellent. No, that's good. Thank you.
Thank you. The next question comes from Mikael Doepel from UBS. Please go ahead. Your line is open.
Thank you. Good afternoon, everybody. A couple of questions. Firstly, on the folding boxboard pricing in Europe, I think you say your release that it looks stable overall compared to Q4. I'm not sure if you're referring to Europe only or globally. Looking at the charts at the end of the presentation, the pricing seems to be down a bit. So maybe if you could clarify how you see the folding boxboard pricing in Europe right now. Let's start there and have a couple of follow-ups.
Okay. So folding boxboard demand for Metsä Board in Europe is good at the moment.
As I said, all the mills are running full, and order inflows are healthy, order books are healthy. So of course, we think about all options. I mean, also option to do something here in Europe, but no decisions have been made so far. But at the moment, situation looks good.
Okay. But for the moment, you would say pricing is stable in Europe?
Pricing is stable at the moment. Yes.
Okay. Okay. That's clear. And then a question on the container board shipping situation in Europe right now. How do you see that evolving? I mean, it's been a bit of a nightmare, I guess, from a logistical point of view globally in the second half of last year. Has there been any improvement? I mean, based on what you're seeing, I guess you do ship some tonnage to, for example, Asia from Europe.
Yeah.
Container situation is tight at the moment. Of course, the biggest impact is on the pulp side. But of course, we see some kind of challenges also in the paperboard side. But as you know, our volumes in Asia-Pacific market, they are not that big. But you're right by saying that the container situation is tight at the moment, and it's not balanced between, especially, China and Europe.
And I guess you ship a lot also to the U.S. on the folding boxboard side. Has that been impacted in any way?
That has been better. The problem is pretty much, or concerns pretty much, these deliveries to Asia and especially to China. But here, as far as pulp is concerned, of course, we are able to use also bulk pulp deliveries and not only container deliveries. So that option will be utilized also.
Okay. That's clear.
And then a final question on the financial impact of the Norra transaction. Just wondering if you could clarify that a bit. I mean, it's basically selling a minority stake in the pulp mill. And I assume that you consolidate everything 100% in your P&L and in the balance sheet. But I guess somewhere you need to subtract the minority stake, I would assume, or maybe just flows through cash flow and dividends. But maybe if you could just clarify the financial impact on your P&L and balance sheet and cash flow from this transaction, that would be great.
Okay. Jussi will take this.
Yes. So on the P&L statement, the pulp mill is consolidated 100% on all lines. But then below the P&L statement, there is a separate table of how the result is distributed between the shareholders of the parent company and the minority.
But then when you calculate earnings per share, minority share is separated from the net result in there. And then in terms of cash flow, Norra Skog is, of course, receiving their share of the dividend that Husum Pulp AB, the company, pays out.
Yeah. Yeah. And in terms of the balance sheet, I mean, what kind of, I mean, what's the size of the minority stake that's going to be booked in equity there? Do you have any numbers already on that?
We have not disclosed the structure of the equity yet, but you will then see it starting from the first quarter of this year.
Okay. All right. But we're going to have a minority basically charge in a way in the P&L coming from this, if I understood you correctly.
Not in the P&L, but when calculating earnings per share, there will be.
Okay.
Only for EPS, not for net income.
Yes. That's correct.
Okay. Perfect. Thank you very much.
Thank you.
Thank you. Just a reminder that if you would like to ask a question, please press zero one on your keypad now. Our next question comes from Johannes Grunselius from Kepler Cheuvreux. Please go ahead. Your line is open.
Yes. Hello, everyone. Johannes here. Can you give some color on the lead times before the higher pulp prices come through in your P&L? How should we be thinking about the realized price in Q1? And I mean, could you also maybe talk a little bit about how quickly the price hikes are being accepted in the market at the moment? And maybe you can sort of indicate what we should expect for the second quarter then. Thank you.
Yeah. Of course.
It depends a little bit whether you are selling to China or Europe, but I would say on the average, it takes two months in the rough figure. That's the typical.
So can you help us a little bit? Yeah. I can do the math here, but I suppose the realized pulp prices for you will sort of not be significantly higher in the Q1 because of this two-month delay, right?
Yeah. The pulp prices for Metsä Board or pulp prices for our market pulp customers?
Yeah. I mean, I'm interested in both sides, actually.
Yeah. I think it's pretty much the same delay.
Okay.
What we can perhaps say more is that as prices started to rise in China first before Europe, and Metsä Fibre has a higher share of their sales allocated to China, so we will clearly start seeing the positive through Metsä Fibre's result first, already starting from the first quarter.
Okay. I mean, what's your view on that? I suppose pulp travels quite easily, relatively easily throughout the world. So I mean, over time, I suppose that the European pricing should be on par with China. I mean, what's your view there?
Yeah. That has typically been the case that now the difference between net prices in China and net prices in Europe is still quite high. So your prices are lower if you think about the net prices.
And of course, that will obviously and probably push prices up also here in Europe if and when the development in China will continue as during last months.
I'm not sure if you can share this, but what's your strategy from here? Is that to go for more price hikes? Do you think the market can absorb that, or what's your thinking there?
Could you repeat the line? The line was not very good.
Yeah. Okay. Yeah. I mean, you've been very active with price hikes of the, yeah, basically over the last few months. And basically, all pulp producers have been very active with pulp pricing. Do you foresee more of that over the coming, let's say, weeks or months, or do you think we how do you see the market?
Is it still sort of the market? Is the demand good enough basically for accepting more price hikes? What's your view there?
In China or in Europe?
Both.
So in China, the demand is good. And as we all know, the prices are really rocketing up at the moment. And of course, then the price gap, if you think about the net prices in China and net prices in Europe, the gap has become bigger. And for that reason, we have seen also price increases in Europe. And I personally think that will continue.
Yes. Okay. Okay. Thank you. And then I have a question on the maintenance breaks or cost for that. Obviously, Q1 will be a maintenance-free quarter, but maybe I missed this, but can you remind us about how the maintenance that is planned for this year and the magnitude for these?
Yeah, so in rough figures, if we compare the impacts versus Q1, so the Q2 impact is somewhere between EUR 5 million and EUR 10 million, then Q3 somewhere between EUR 10 million and EUR 15 million, and then Q4, the highest comparing Q1, somewhere between EUR 15 million and EUR 20 million.
Okay. Got you. Okay. Thank you very much.
Thank you. We now have no further questions, so I will pass back for any closing comments.
Okay. Mika, you're here, so thank you very much for good questions, and I wish you a good continuation of the day. Thank you. And most importantly, stay safe. Thanks.