Strategic Protectionism and the Resilience of RYAM: A Case for Long-Term Value in the U.S. HPDP Market

The U.S. high-purity dissolving pulp (HPDP) market has long been a battleground for global trade tensions, with antidumping and countervailing duties emerging as pivotal tools to shield domestic producers from unfair foreign competition. Rayonier Advanced Materials (RYAM), a leader in cellulose-based technologies, stands at the center of this strategic contest. As the U.S. government intensifies its focus on protectionist policies to revive manufacturing, RYAM's recent filings for antidumping and countervailing duties against Brazilian and Norwegian HPDP imports could redefine its margins, preserve jobs, and catalyze a broader resurgence in domestic production. For investors, this represents a compelling opportunity to align with a company poised to benefit from regulatory tailwinds and a reinvigorated industrial ecosystem.

The Threat of Unfair Trade Practices

RYAM's Cellulose Specialties segment, which includes HPDP, has faced relentless pressure from imports priced far below fair market value. In 2025, the company and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) filed petitions with the U.S. Department of Commerce (USDOC) and the U.S. International Trade Commission (USITC), alleging that Brazilian and Norwegian HPDP producers are dumping their products at margins of up to 168% and 226%, respectively. These imports, coupled with 30 Brazilian government subsidies, have eroded U.S. market share and undercut domestic pricing, threatening RYAM's operations in Georgia and Florida.

The implications are stark. HPDP is a critical input for industries ranging from textiles to pharmaceuticals, and its undervaluation distorts global supply chains. For RYAM, the result has been a 15% year-over-year decline in Cellulose Specialties sales volumes in Q2 2025, despite a 3% price increase. Operating income for the segment plummeted by 42%, reflecting the dual pressures of operational disruptions (e.g., a labor strike at its Tartas plant) and tariff-driven uncertainty.

Strategic Protectionism as a Catalyst for Stability

The U.S. government's response to these petitions could be transformative. If the USDOC and USITC confirm dumping and material injury, duties will be imposed on the implicated imports, directly stabilizing RYAM's margins. This aligns with a broader trend of strategic protectionism underpinned by the Biden administration's emphasis on reshoring critical industries. For instance, recent antidumping investigations into hardwood and decorative plywood from China, Indonesia, and Vietnam signal a sustained commitment to shielding domestic producers from unfair trade practices.

For RYAM, the potential imposition of duties would reduce the influx of low-cost imports, restoring a fairer competitive environment. This could enable the company to maintain its “value over volume” strategy, which prioritizes higher-margin cellulose specialties over commodity-grade products. In 2025, RYAM projects mid-single-digit price increases for its Cellulose Specialties segment, even as sales volumes decline due to the indefinite suspension of its Temiscaming plant. These adjustments, combined with cost-reduction initiatives and strategic capital investments, position the company to weather short-term volatility while securing long-term profitability.

Reinvigorating U.S. Manufacturing: A Win-Win for RYAM and Investors

The broader implications of these duties extend beyond RYAM. By curbing dumping, the U.S. government can incentivize domestic production of HPDP, a sector critical to advanced manufacturing and green technologies. RYAM's investments in biomaterials—such as bioethanol and prebiotics—further underscore its alignment with sustainable industrial growth. The company's $67 million in green capital funding and its plans to expand the Fernandina Beach bioethanol facility exemplify this forward-looking approach.

For investors, the case for RYAM is clear. The company's proactive engagement with trade enforcement mechanisms, coupled with its strategic pivot to high-margin products, creates a durable competitive advantage. Moreover, the potential for affirmative findings in the USDOC and USITC investigations adds a layer of regulatory certainty, reducing downside risk in a volatile market.

A Path Forward: Positioning for Long-Term Value

Investors seeking exposure to the U.S. manufacturing revival should consider RYAM as a strategic holding. The company's resilience in the face of operational and trade-related challenges, combined with its proactive use of protectionist tools, positions it to outperform in a landscape increasingly shaped by global trade tensions. While short-term headwinds persist—such as raw material constraints and energy cost fluctuations—the long-term outlook is bolstered by RYAM's commitment to innovation, sustainability, and margin preservation.

In an era where strategic protectionism is reshaping industrial competitiveness, RYAM offers a blueprint for value creation. By leveraging regulatory interventions to stabilize its margins and reinvigorate domestic production, the company is not only safeguarding its own future but also contributing to a broader renaissance of U.S. manufacturing. For investors with a long-term horizon, the time to act is now.