Virtually all of the major producers (˜75% of North American UFS capacity) announced a $60/ton ($3/cwt) price increase across different UFS grades, effective early May, according to Wilde. The announcement follows successful price increases for both cut-size ($40/ton) and roll grades ($35-$40/ton) in March. The recent announcement, Wilde adds, is driven by a sharp rise in pulp costs, wood fiber shortages in parts of the U.S. South, improved February shipments (+5.9% y/y), and capacity cuts. The major UFS producers in North America are largely integrated, so rising pulp prices are a relatively modest issue for them, Wilde explains. Smaller producers, he adds, including a number of private players, are struggling to keep their heads above water. "We wouldn't be surprised to see some of these smaller mills shutter in the next two to three months," he says.
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