Wednesday, April 21, 2010

Pulp Markets Remain Strong

The global pulp market remains extremely tight. Recall, we have announced numerous pulp mills that were shut down due to poor economics, now the lack of supply has hurt availability for most fibers. Catalyst Paper announced the reopening early May of the second pulp line in British Columbia, with a capacity of 165,000 tons of NBSK, this should help.
Major producers have all announced $30-50/MT price increases for May. Price levels for Domtar, Canfor and Mercer International for NBSK will transact at $1,000/MT for May (up $40/MT). NBSK in North America prices will be up 13% from the July 2008; note, this is 57% from May 2009 (the lowest price point of this current cycle). Pulp producers in Europe have also increased pulp prices for May $30/MT and $50/MT for hardwood - BEK.
The disruption of supply from the Chilean earthquakes, the strikes in Sweden, and now, spring maintenance have all resulted in even less availability.

5 comments:

Anonymous said...

With fewer and fewer pulp mills, this market might last for several years. Any new capacity coming on stream?

Anonymous said...

With fewer and fewer pulp mills, this market might last for several years. Any new capacity coming on stream?

Anonymous said...

Stronger demand only means increase in the market price.

Anonymous said...

The pulp market is now out of control - demand is up, price increases are consist, inventories are low, producers are down or out of business.... interesting times.

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