Market Pulp Prices on the Move, U.S. Containerboard Price Hike Implemented

Oct. 10, 2012 - Over the past weeks, the pulp market has seen a number of price hike announcements on softwood and hardwood grades.

According to Deutsche Bank (DB) analysts, in softwood, most producers have announced a $20/mton price hike on US NBSK, effective Oct 1 (list price = $850/mton).

Elsewhere in the world, NBSK prices are also rebounding in China as well as Europe. In hardwood, producers have announced a $30/mton price hike in key regions, DB said.

However, "While prices may continue to rally in the near term, pending capacity additions loom over the market," DB noted.

CONTAINERBOARD

Pulp & Paper Week reported that domestic producers got the full $50 per ton price hike in September.

"This marks full recognition of the recent pricing initiative, taking liner prices to $685-695/ton and medium (East) to $655-665/ton," said Mark Wilde, Research Analyst at DB who covers the Paper and Forest Products sector.

"The focus now turns to implementing box price increases. With containerboard supplies tight and most big integrated firms determined to show improved margins and returns, success seems likely," he added.

SOURCE: Deutsche Bank