Market Pulp Update

Strong demand coupled with supply disruptions from mill closures assisted North American market pulp producers to advance prices to the highest levels in over a decade.
Many producers shuttered inefficient equipment and costs of manufacture increased such as energy and wood sources during 2006 creating an environment for advancing prices. The unofficial count was 11 pulp mills closed, displacing 2.3 million tons – 7 of which produced Northern Bleached Softwood Kraft (NBSK). US list price for the NBSK rose from $640 to $725 / ton by July 2006. The 4Q06 allowed for pricing to reach $770/ton for NBSK; $685 for NBNK; $708 for BEK-( Bleached Eucalyptus Kraft). Look for further increases throughout 2007.