Market Pulp Holding up Better than Expected

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As expected, market pulp prices fell $30 - $50/metric ton across the globe in August, Mark Wilde, senior analyst with Deutsche Bank, reports. In the U.S., softwood grades (down $30/metric ton m/m) are holding up better than hardwood grades (down $40 - $50/metric ton m/m), Wilde notes.

"On balance, the price declines appear to be more measured than we expected, and the downturn may not be as deep as once feared," he adds.. Global inventories are in fairly good shape, and there are signs that the market may already be starting to turn in China. International prices into Asia fell $50/metric ton at the end of July, and they are poised to fall another $20/metric ton in August. However, local prices in China rose last week, raising hopes that the "buyers' strike" among Chinese buyers is ending, Wilde explains.