Market Pulp Still Trending Upward

Print this article | Send to Colleague

The global market pulp trend remains upward, Mark Wilde, senior analyst with Deutsche Bank reports. "But there are important distances between grades and between regions," he adds. Asian hardwood markets appear to be the weakest spot. "Over the next several weeks, European markets will be worth watching as rising U.S. dollar prices and a falling Euro create a double-dose of cost pressure for non-integrated mills," Wilde notes. In NBSK, producers have announced a $20/metric ton price increase for June 1, taking NBSK to $1,020/metric ton in North America, $980/metric ton in Europe, and $890 -  $900/metric ton in China. While falling Chinese resale prices, weak Euro, and pending restart of close to 2 million metric tpy of pulp capacity in Canada and China suggest that prices may be reaching a near-term peak, a recent announcement by Chinese authorities of prospective closure of around 4 million metric tons of paper, board, and pulp capacity could act as a catalyst for further price increases, Wilde explains.