NBSK Market Pulp Hike Likely
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All major producers have announced a $30/metric ton price hike on NBSK, reports Mark Wilde, senior analyst with Deutsche Bank, taking the U.S. price to $1,020/metric ton. With U.S. demand steady, U.S. spot prices rising, and the downtime season approaching, "we think an NBSK price hike will be implemented. The $30/metric ton global hardwood increase appears more of a challenge," Wilde adds. Deutsch Bank's recent survey of trade contacts found a wide divergence of opinion. Big customers are battling the hardwood hike, but consumer inventories are lean in most industrial nations and Latin American eucalyptus producers are "hanging tough," Wilde reports.
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