Market Pulp Prices Equal 2010 Record Levels
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NBSK market pulp prices rose $30/metric ton to $1,020/metric ton in April, equaling last June's record levels, reports Mark Wilde, senior analyst with Deutsche Bank. The second consecutive $30/metric ton hike is driven by steady U.S. demand and balanced inventory levels, rising U.S. spot prices (+$110 - $120/metric ton in 2011), and the impending downtime season, Wilde says.
Pulp prices are rising in key offshore markets, Wilde notes. In Europe, NBSK is expected to rise to $1,010/metric ton. Chinese producers, he says, have implemented $920 - $930/metric ton April levels, +$30/metric ton m/m. "However, we are hearing some reports of brokers/traders trimming positions in China," he adds. In hardwood, while demand is mixed, producers implemented a $30 - $40/metric ton hike in April on the back of strength in softwood markets. U.S. BEK was up $30/metric ton to $910 - $930/metric ton. Higher BEK prices are resulting in some buyers substituting lower-priced U.S. NBHK (˜$75/metric ton lower) for BEK, according to Wilde.
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