N.A. Market Pulp Continues Downward Trend

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North American domestic market pulp prices fell $5 - $10/metric ton in December and the overall trend remains downward, reports Mark Wilde, senior analyst with Deutsche Bank. The exception is NBSK in China, as dissolving pulp customers in the rayon market are reportedly adding NBSK to their mix.

Domestic NBSK prices on the West Coast are being aided by robust Chinese demand. In the Mid-West and East, there are reports of spot deals, Wilde says. Overall, North American NBSK prices are down $10/metric ton to $960/metric ton in December.

In China, export NBSK prices are up $10 - $30/metric ton and could rise further by $10 - $20/metric ton in January. NBSK price in the local Chinese markets is also rising. Hardwood fundamentals are much weaker and prices are declining in all the major regions, according to Wilde. Brazilian producers cut BEK prices by $50/metric ton in Asia and by $20/metric ton in Europe in December. In North America, BEK prices fell $10/metric ton to $890/metric ton. North American fluff pulp was down $10/metric ton to $1,030 - $1,050/metric ton. In Europe, pulp prices were down $5 - $25/metric ton, depending on the grade.