Pulp prices on the decline

Pulp prices continue to witness pressure due to demand reduction. Producer inventories have increased to 44 days (up from 30 days). Spot pricing of $500/ton for large orders of NBSK are rumored on shipments exported to China. Domtar and Canfor Pulp have reduced NBSK list to approximately $40-50/ton. We forecast today's spot pricing could become market pricing soon.