Domtar and SAPPI recently announced yet another increase for their market hardwood pulp of $50/ton for shipments. It was also reported that most of the producers of BEK will increase pricing $30/ton. This move follows all the North American producers of softwood pulp with the earlier announcement for an increase of $30/ton. Once all prices are into the market, the NBSK price for North America will be $910/MT and Europe will be $890/MT.
Most pulp buyers will not have a choice, but to pay the increase. Pulp supply has been tight due to continued strong demand in China. Also, the earthquake in Chile will impact several producers.
Pulp prices have staged a remarkable rally in the last 10-11 months, with most grades rising more than $200/MT.
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