Wood pulp near 22-year highs

North American wood pulp prices are closing in on their previous peaks set in the spring of 1995. Parsons & Whittemore, of Rye Brook, N.Y., plans to boost sales prices by $20/metric ton to $705 in June for southern bleached hardwood kraft (SBHK) pulp. Meanwhile, Tembec of Montreal and Pope & Talbot of Portland, Ore., have announced a $20 price increase to $830 for their northern bleached softwood (NBSK) grades.
Although a bit softer than USA market, hardwood markets are benefiting from reduced wood supply in Northern Europe. In
Europe, a strong Euro has allowed NA pulp producers to raise their export prices with little resistance from customers. Seasonal maintenance downtime has led to reduced inventories while some producers are speculating about a potential price hike in June.
Certain paper products are in strong demand so production of softwood and hardwood pulp has held fairly strong. One reason is that past lumber mill shutdowns have created a shortage of softwood pulp in some regions. And, as papermakers turn to more hardwood pulp for mixing, those prices also firm.