Market Pulp grades have witnessed numerous price increases. Worldwide shipments in 2005 totaled nearly 40million tons - growing for the 4th consecutive year. 2006, so far, has illustrated continued growth in shipments. Despite significant capacity reductions in the printing and writing sectors of the fine paper market - the primary consumers of pulp - and reduction of pulp capacity of nearly 2.5million tons of market pulp production - worldwide shipments of pulp have increased. Global shipments to China and South Korea have grown dynamically to more than make up for these decreases .
Benchmark NBSK (Northern Bleached Softwood Kraft) has reached a 10-year high in price given the solid demand from Asia. The USA price for NBSK was $750 in July - up 19% from the same time last year. Prices are expected to continue to increase.
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