Market Pulp Remains Flat

Global market pulp list prices remained flat in November, but the underlying market continues trending lower, reports Mark Wilde, senior analyst with Deutsche Bank. Softwood markets remain relatively snug, but could weaken in the seasonally slower December/January period, Wilde notes, adding that hardwood markets appear weaker than softwood. BHK list prices in Asia were reportedly down $20 - $50/metric ton in October. Late last week, Chilean producer CMPC announced a $50/metric ton decline on its Asian BEK prices, effective December 1. With news of additional supply coming onboard in the next two to three months (Kertas Nusantara, Indonesia = 525,000 metric tons, APRIL's third line at Kerinci, Indonesia, and additional capacity of ˜200K metric tons at Rizhao), prices are apt to come under some additional pressure during the winter months, according to Wilde.

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