Analysts and trade publication are reporting that northern bleached softwood kraft (NBSK) pulp prices have been unchanged for months at $630/metric ton. Buyers have a different view—saying that spot prices have been sliding since March and sales were as low as $510 in July.
Pulp purchasing has been weak since papermaking has been slow all summer season—and some market participants continue to note smallish transactions for the raw material. Analyst Stephen Atkinson at BMO Nesbitt Burns says "the paper and forest products industry has had to contend with exceptionally weak demand for softwood pulp, coated and uncoated free sheet papers, newsprint and packaging products." CIBC World Market analysts expect the next pricing direction will be up—a 2.5% rise in 2006 average annual prices. But, that’s not the view of analysts at Smith Barney who are looking for a 6% decrease in 2006 list prices. But, for now, tags may bounce upward a bit—since demand from non-integrated papermakers often picks up ahead of the catalog season and integrated mills may try to build inventories before regularly scheduled autumn maintenance downtime.
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