MARKET PULP UPDATE

It's turning out to be a favorable pulp cycle. The pulp rally shows no signs of slowing down. The market saw a $20/ton price hike initiative on NBSK for September. Moreover, the prices of most hardwood grades rose $20- 25/ton in August, and with the market remaining tight, several producers have announced a $20-30 increase for October. The steep drop in the US dollar in recent weeksiwill provide the fuel for further attempts to boost prices. Despite the highest prices in over a decade, a strong Canadian dollar for high chip costs are squeezing Canadian mills.