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Market Pulp Prices Back-off, OCC Easing Slightly
Aug. 18, 2011 - North American NBSK list prices have dropped $30 to $990/mton, and hardwood grades declined $20-30/mton (August NBHK = $820/mton), report analysts at Deutsche Bank (DB). "Spot prices remain quite weak. There are reports of NBSK in the $760-810/mton range and NBHK in low/mid-$600's," said Mark Wilde, a senior analyst at DB who covers the paper and forest products sector. "Trade contacts have reported spot BEK deals at [about] $600/mton in Europe, [about] 27% below Fibria's August 1 'list' price of $820/mton. "In China, weak demand and rising inventories have pulled prices down," Wilde added. OCC (Old Corrugated Containers) "In the domestic market (U.S.), August OCC was up $2/ton to $179/ton (+42% year/year)," Wilde said. "However, we've received trade reports over the past week suggesting that domestic may be starting to ease. OCC has now been above the $150/ton level for 10 months in a row. "It's not hard to see why OCC prices have been so healthy in 2011 — thru May, U.S. OCC exports were up about 43%," Wilde noted. “There has also been modest easing in export OCC price to Asia/China. August prices were down $5/ton to $205-220/ton FOB. "Year-to-date export OCC prices have been at record levels. The recent decline is due to slower packaging demand in China," Wilde said. SOURCE: Deutsche Bank |