January 2011
Over The Wire Tissue Edition
Archive/Subscribe | TAPPI.org | Advertise | TAPPI Press Catalog

Global Pulp Figures Better-Than-Expected

Print Print this article | Send to Colleague

Wilde further reports that, according to data released by the Pulp & Paper Products Council, November global pulp shipments increased on a m/m and y/y basis, up 2.7% and 1.4%, respectively. Hardwood shipments were up 10.4% m/m, largely due to higher shipments into China. This sequential improvement was somewhat offset by softwood shipments (-3.5% m/m). Inventories declined by two days to 32 "days of supply." These numbers were stronger-than-expected and should help to support pulp prices, Wilde notes.

Pulp production rose in November, with operating rates climbing from 87% in October to 92% in November, Wilde adds. Global shipments also increased by 92,000 metric tons to 3,348,000 metric tons. Despite higher production levels, both softwood and hard wood inventories decreased by one day of supply: (1) hardwood fell from 43 to 42 days, and (2) softwood fell from 26 to 25 days.

Shipments to purchasers in Latin America and China showed the strongest m/m comparisons, up 10.8% and 14.2%, respectively, according to Wilde. The improvement was muted by weaker shipments to Japan (-5.4% m/m) and Western Europe (-1.9% y/y). Despite weaker paper volumes in North America, pulp shipments increased 1.3% m/m and 2.7% y/y.

With demand trending positive and inventories in check, the November figures look positive for pulp producers, Wilde points out. Three large pulp producers, Arauco, Botnia, and Domtar, have just announced $10/metric ton increases for softwood pulp to China in January, suggesting that they are also seeing bullish signals in the market.



Share Share on Facebook Share on Twitter Share on LinkedIn

Naylor, LLC

TAPPI Over the Wire - Tissue Edition | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947