Global Pulp Markets Tight

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The global pulp market remains tight, and April North American NBSK prices are expected to rise to $960/metric ton (+$50/metric ton over March and +$325/metric ton or 51% since last May), Wilde reports. Recent mill restarts by Arauco and CPMC are bringing Chilean capacity back into the market. "However, even with these restarts, we believe the "Chile effect" on global supply could easily stretch to six months. Add to this a further decline in inventories in March, robust global demand, spring maintenance downtime by North American mills, and a sharp rise in North American NBSK spot prices (+$20/metric ton to $810-$850/metric ton), and a further run-up in prices appears likely," WIlde says.