Tuesday, December 22, 2009

More Pulp Price Increases

Recently, Deutsche Bank hosted a conference on the pulp market and declared that after pricing had held flat for the month of December, the major softwood and hardwood producers once again announced price hikes of $20-30/mton in the US, Europe, and Asia, effective January 1.


Producers set NBSK price at $850/mton (+$20/mton) in the US, $830/mton (+$30/mton) in Europe, and +$20-30/mton in Asia, with China at $720-730/mton. China had been heading up the robust demand for pulp because of low inventories and tight supplies, but suddenly there are reports of slowing demand in China – perhaps the pipe line is finally full. Also, China started up 6 new pulp machines during the 2H2009 and 3 more will come on line 1H2010. China's new production will increase to 2.6Million tons of pulp by the end of 2010. Most North American buyers report that pulp remains fairly tight in supply due to equipment curtailments, especially Hard Wood. These same buyers predict this tightness will not last and a price correction will occur 2Q10.

2 comments:

Anonymous said...

If pulp prices continue to increase - the pressure to increase paper prices will continue. If paper prices increase - more of a reason to develop electronic media.

Anonymous said...

With additional capacity - does anyone think prices might actually come down? supply being greater than demand. If China departs USA market - this is very big dynamic