Market Pulp Prices at Record Level
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This week Södra, Sweden, (No. 1 market pulp producer in Europe) announced a $30/metric ton price hike in Europe (see item below), taking northern bleached softwood kraft (NBSK) to a record level of $1,040/metric ton, effective June 1, reports Mark Wilde, senior analyst with Deutsche Bank. U.S. NBSK prices, he notes, are currently matching last June's record level of $1,020/metric ton. NBSK prices in Europe are up $60/mton since January 11. However, a strong euro versus the U.S. dollar (up 10.7% YTD) has limited margin gains for local producers. No other producer has yet announced a price hike for June.
With limited new supply coming into the global market over the next 18 months, softwood inventories at just 24 days of supply, U.S. mills taking maintenance downtime, and the U.S. dollar continuing its slide, the bias on softwood pulp prices appears to the upside, Wilde says. Local NBSK prices in China, however, are showing signs of weakness.
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