Thursday, May 28, 2009
Pulp Producers to Raise US Prices
West Fraser and Canfor Pulp have both informed North America customers that they will increase northern bleached softwood Kraft (NBSK) pulp prices to $660/ton effective June 1. The moves follow previous announcements by Domtar and Northern Pulp that they will raise NBSK pulp prices to $680/ton.
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This is a strange move as global prices for softwood and hardwood are falling, you would expect the opposite. Unless plant closures and reduced capacity is creating scarcity. Bankruptcies and plant closures are possibly to blaim. IP and others seem to be consolidating production at several super-mills and closing other less profitable mills.
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