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Pulp prices have increased six times in as many months and are now around $175/metric ton higher, up from $605/metric ton for southern bleached softwood kraft, according to Fitch. The demand pulling pulp prices is not North American but Chinese. North American pulp consumption, as well as European, is down around 14% YTD, but the demand from China is much higher and accounts for 22% of world pulp consumption, Fitch says. This cost factor is pushing paper prices higher, whereas other costs, i.e. caustic soda and energy, have probably seen their limits of deflation with the costs for calcium carbonate, kaolin, and titanium dioxide already rising.
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