Saturday, March 03, 2007

Pulp and Paper Prices not in Sync

Wood pulp producers want to boost prices but paper makers are skeptical. That’s because overall demand for printing and writing papers in North America fell 3.2% in January compared with January 2006, according to Canada's Pulp and Paper Products Council. Total shipment levels were down 3.4% year-over-year at 2.26 million metric tons.

Pope & Talbot this week announced a $30/metric ton price increase for northern bleached softwood (NBSK) grades of market pulp—but pushed the effective date to April. The new North American list price would be $820/metric ton. Earlier, competitor Weyerhaeuser announced plans to hike NBSK by $20 in March to $810.Despite a $790 list price in February, buyers report NBSK sold for $745.
Meanwhile, International Paper, Georgia-Pacific and Weyerhaeuser separately informed U.S. paper-making customers they plan to raise their southern bleached softwood Kraft pulp prices by $20/metric ton in March. The current list price of SBSK is $750 but it sold on average for $720 in February.

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