N.A. Pulp Prices Slide

North American pulp prices remain under pressure in August, reports Mark Wilde, senior analyst with Deutsche Bank. Canfor, Domtar, and Mercer have all announced $30/metric ton price cuts for August 1. This takes U.S. NBSK "list" prices to $990/metric ton, he adds. The key issues, according to Wilde, are China demand and a two-day rise in global softwood inventories in June.

July NBSK prices are down ˜$60/metric ton in China. There are two other issues pressuring the market, Wilde points out—ripples from a sharp decline in spot dissolving pulp prices (more than $1,000/metric ton) and integrated papermakers selling more market pulp. "The trade papers are reporting spot NBSK deals as low as $760 - $770/metric ton. Surprisingly, no hardwood producer has yet announced a price decline for August in North America. Trade reports suggest prices on hardwood are falling. Reports suggest NBHK deals in low – to mid-$600s," Wilde says.

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