Market Pulp Prices Continue Rally ...For Now
Oct. 9, 2009 - Prices continue to rally for market pulp, says Mark Wilde, senior analyst at Deutsche Bank covering the Paper & Forest Products sector.
But, " ...we are hearing reports of slower Chinese demand, and Chinese buyers are reportedly resisting latest increase attempts," Wilde noted.
All major producers have announced $30-50/mton October price hike.
Domtar, Mercer International, SFK Pulp, Tembec, West Fraser, Weyco and Canfor have slated North America NBSK October price at
In China, Mercer, Tembec, and West Fraser have slated October NBSK price at $670/mton (+$30/mton).
However, with reports suggesting that shipments to China could ease, the key question is whether the October price hike will
stick, said Wilde.
Supply is creeping back into the market: Catalyst Paper, Domtar, Fraser Paper, Terrace Bay and Nanaimo have announced mill restarts.
Trade sources also report that pricing rebound is drawing high-cost Chinese pulp mills back into production, Wilde added.
SOURCE: Deutsche Bank