The Global Market Pulp Rally Will Likely Continue

Considering the impact of the earthquake supply shock on Chile, Wilde says that the world market pulp rally should continue. Pulp prices have staged a remarkable rally in the last 10-11 months, with most grades rising more than $200/metric ton, and yet another round of price hikes is in the market for March. The 3.2 million metric tons of producer inventories at the end of December are down from a cyclical peak of 5.1 million metric tons in November 2008. At the same time, weather-related fiber issues in many parts of the Northern Hemisphere make it unlikely that other parts of the world can pick up the slack, Wilde explains.

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