Market Pulp Set to Decline

Print this article | Send to Colleague

Market pulp prices appear set to decline this month, according to Mark Wilde, senior analyst with Deutsche Bank. Wilde notes that "while no other major producer announced a price decrease after Canfor’s announcement of $20/metric ton price cut on NBSK, we are hearing of reports that others may announce similar price cuts."

On the hardwood side, Latin American producers Fibria (No. 1 producer in the world) and Suzano have announced flat global prices on BEK for October. With buyers pushing for a $40 - $50/metric ton price decline this month, it’s going to be a battle, Wilde says.

The August global market pulp data (higher inventories and lower shipments) suggest that buyers should have the bargaining power to drive down prices. Reports of producers offering $25/metric ton discounts in South Korea also lend credence to this argument. "We also note that Terrace Bay restarted its 350,000 tpy NBSK mill in Ontario this week," Wilde reports.