North American Market Pulp Trending Downward

Domestic market pulp prices fell $5 - $10/metric ton in December and the bias remains downward, says Mark Wilde, senior analyst with Deutsche Bank. The exception is NBSK in China, he adds. 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. Overall, North American NBSK prices are down $10/metric ton to $960/metric ton in December.

In China, NBSK prices are up $10 - $30/metric ton and could rise further by $10 - $20/metric ton in January, according to Wilde. Last week, Millar Western and Winstone Pulp announced a $30/metric ton price increase on BCTPM to China. West Fraser and Tembec have also announced similar price increases, Wilde notes.

Hardwood fundamentals are weaker and prices are declining in all the major regions, Wilde continues. 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, Wilde reports.

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