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Travels with Larry Archive

North American Pulp Market Improving

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Deutsche Bank's Senior Analyst Mark Wilde says that his summer stance in regard to market pulp was "too bearish." North American NBSK "list" prices in September remained flat at $990/metric ton, driven by improved seasonal demand, especially for domestic coated printing and writing grades, lower price erosion in U.S. spot markets, and a rebound in Chinese softwood markets. Hardwood prices remained flat in Sept, but the hardwood market remains weaker than softwood. Producers are offering higher discounts, ˜20% - 25% on effective list prices, according to Wilde.

Export prices to China offer a mixed picture, he adds. While softwood prices fell, one North American producer has announced a $20/metric ton increase on export NBSK. Chinese demand is picking-up. On the hardwood side, while Arauco's flat prices for Seember appear to have been accepted, there are reports of Chinese producers offering higher discounts on local prices. Terrace Bay is reportedly restarting its 350,000 metric tpy NBSK pulp mill by October 4, making it the fourth mill in five months to restart pulp production. In total, ˜5% of North American market pulp capacity has come back into the market.

 

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