Blog Post

Market conditions favour pulp price hikes in 2018

(November 23, 2017) On a whole, market conditions favour pulp price hikes (especially hardwood). Tight markets, low Chinese pulp inventories, healthy demand favour a “pricing outlook that will again surprise on the upside in 2018, not to mention a very bullish 3-4 years’ outlook on a lack of supply coming to the market,” as per BTG Pactual analysts in their report dated Nov. 15, 2017.
Additionally, the Chinese recently released Environmental Protection Controls for waste paper imports (setting impurities at 0.5%), which could materially limit imports of recycled material, and generate cost inflation along the chain (bullish implications for pulp).
Price Hikes
November saw both NBSK and BEK producers coming out with price hikes.
Fibria (Brazil) last month (Nov 15) announced yet another hardwood hike for December of US$30/t valid for all regions. Fibria’s list prices (US$30/t hike) are now: (1) Europe: US$1000/t; (2) North America: US$1180/t and (3) Asia: US$810/t. If implemented, this would imply net prices of US$720-750/t for pulp players, which compares to BTG Pactual’s 2018-19 forecast of a net price realization of US600/t. Suzano (Brazil) has also come out with a USD30/t hike in BEK prices globally in December. Ence (Spain) is set to increase its BEK price by $30/tonne to $1,000/tonne from December 1. Arauco (Chile) has come out with a $50/tonne price increase on bleached radiata pine in China, effective with December shipments; BEK, UKP up $30/tonne.
“Market outlook for BEKP globally remains positive with strong demand in all markets including Europe. The increase in demand clearly outpaces the supply keeping the stock levels low. Specifically, in China prices for virgin pulp are stronger day by day,” Ence said in the price increase announcement on 23 October.
In NBSK, West Fraser has slated a $20/tonne December rise on NBSK pulp in North America; some NBSK producers have lifted China to $900-910/tonne. Canfor, Domtar have also set new $20-30 hikes for NBSK (the year’s 10th NBSK hike). Canfor Pulp has announced a $20/tonne NBSK pulp price increase in North America, effective December 1; $10/tonne rise announced for China. Domtar has slated a $30/tonne price increase on NBSK, SBSK, and fluff pulp prices, effective December 1.
Mercer International has announced an increase to NBSK pulp list price in Europe to $1,030/tonne, up $30/tonne on December 1.
Additionally, US pulp spot market prices increased $10-20/tonne last month.
Ilim Group (Russia) has set a $50/tonne price increase on BSK pulp in China, effective with December shipments; for BHK $30/tonne rise.
Europe
Meanwhile in Europe, LWC, MWC and SC-Paper prices could increase by up to 8 % from January 2018 if producers get their way, EUWID reported last month.
As per Euwid, the hike in coated and uncoated magazine paper prices from the start of the next year was motivated by higher production costs and/or good demand, according to the companies involved.
Italy’s Burgo Group announced a 7-8% price increase for its LWC and MWC magazine paper grades for all new orders from January 2018. The price hike was necessary “to ensure the sustainability of the industry after continuous rising costs and consequent erosion of profitability,” the company explained.
According to Sappi, order books are strong, but the margins are depressed by the severe input cost inflation. The company said it would continue passing on this cost inflation by increasing its LWC and MWC grades prices by 6-8% from 1 January 2018 for all markets
SCA sees an improved global market balance as well as improved demand for printing. Against this background, the Swedish publication paper manufacturer is asking for a €40/t price hike for its coated and uncoated mechanical reel paper on the market in Europe
And in mid-October, Germany’s magazine paper manufacturer Leipa had announced a €30/t price hike for LWC, valid for all grades and markets with effect from January 2018. (Sources: EUWID, RISI, BTG Pactual, PPPC, & other industry reports)

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

sappi
Sappi to Increase Prices on Woodfree Grades in Europe by 6-8%, Jan. 1

(Brussels, Nov. 17, 2017) Sappi today announced that it will increase prices for woodfree

navigator
The Navigator Company to Increase Prices for Uncoated Woodfree Paper by 5-7%

(Portugal, Nov. 20, 2017) The Navigator Company announced today that it will be increasing

zander_logo
Zanders to Hike Prices for All of Its Paper Grades on January 1

(Germany, Oct. 25, 2017) Zanders today announced a price increase of 5-8% for all

lecta_logo
Lecta Distribution Group to Hike Prices by 5-8% for All Paper Grades

(Italy, Nov. 22, 2017) Lecta Distribution Group, made up of Torraspapel Distribution in France,

Giroform-Digital-Box-shot
Mitsubishi HiTec Paper to Hike Price for Thermal and Carbonless Papers

(Germany, Oct. 9, 2017) Mitsubishi HiTec Paper said that it will be increasing prices

print_generic
West Linn Paper Company to Increase Prices For its Coated Products

(USA, Oct. 10, 2017) West Linn Paper Company announced that it will be increasing

uncoated
Domtar and PCA Lead Uncoated Free Sheet Price Increases

(New York, Sept. 12, 2017) The following is insight from Vertical Research Partners’ packaging

sappi_finepaper
Sappi Europe hikes printing paper prices

(Brussels, Belgium, Sept. 14, 2017) Due to an unexpected further sharp rise in raw

morrum_sodra
Södra to increase the price for its NBSK Pulp in Europe to $920/tonne

(Stockholm, Sweden, Sept. 1, 2017) Södra said that it has informed its customers that

uncoated
Uncoated Free Sheet: Admit It or Not, Lots of Support Emerging

(New York, USA, August 15, 2017) According to Vertical Research Partners’ packaging and forest

recycled_newsprint_generic
Recovered paper exporters look for new markets as China tightens scrap paper imports

(Brussels, July 27, 2017) Supported by strong domestic dynamics and healthy global demand, Chinese

lecta_logo
Lecta to Hike Prices for Thermal and Carbonless Paper

(Italy, July 6, 2017) Lecta has announced price increases for its thermal and carbonless

paperboard
Sonoco-Alcore to Increase Paperboard Prices in Europe

(Italy, July 05, 2017) Sonoco-Alcore S.a.r.l. today announced it will again raise prices by

rengo_generic
Rengo to hike containerboard and corrugated boards/boxes prices

(Tokyo, Japan, 04 Jul 2017) Japanese packaging company Rengo will increase prices on its

fibria
Fibria Increasing Pulp Prices by $20/ton in North America and Europe

(Sao Paulo, Brazil, June 27, 2017) Brazilian market pulp producer Fibria yesterday announced that

reacto-cb
Papierfabrik August Koehler to Increases Prices for Its Reacto Carbonless Paper

(Germany, June 27, 2017) Papierfabrik August Koehler SE said that it will increase its

SCA_logo
SCA to increase brown and white Kraftliner prices

(Sweden, 22 Jun 2017) SCA increases prices for Brown and White Kraftliner by €

nordic_paper_backhammar_mill
Nordic Paper to Increase Price for Greaseproof Papers

(Norway, June 23, 2017) Nordic Paper announced that it will increase prices on greaseproof

ence-logo
Ence Announces Progressive Price Hike for Bleached Eucalyptus Kraft Pulp

(Spain, June 19, 2017) Spanish pulp producer Ence has announced a price increase rise

OCC_generic
Link: spike in Chinese demand boosts OCC prices

(London, U.K., May 11, 2017) Having nosedived around the start of the second quarter,

lecta_logo
Lecta Merchanting Division Announces Price Increase for Its Paper Grades

(Spain, June 13, 2017) Lecta Merchanting Division, made up of Torraspapel Distribution in France,

hiTec_mitsubishi
Mitsubishi HiTec Paper Announces Price Increase for Thermal and Carbonless Papers

(Germany, June 14, 2017) Mitsubishi HiTec Paper has announced a price increase of 6

tubes_cores
Sonoco Restating Price Increase for All Uncoated Recycled Paperboard Products

(USA, June 14, 2017) Sonoco [yesterday] announced it has restated and is implementing a

coatedpaper_generic
North American Producers of Coated Paper Announce Price Hikes

(USA, June 2, 2017) A number of coated paper producers in North America have

Fibria_main
1Q/17 Global HW Pulp Market Review: Growth of 338K t in global demand for BEKP (Feb/17 vs. Feb/16); demand supports price hikes

(Sao Paulo, Brazil, April 28, 2017) This year began on a more positive note

Q1_2017_review
Pulp firm Mercer reviews Q1/17 market: “steady rise in Q1 pulp prices; strong demand”

(Calgary, Canada, April 28, 2017) "In term of the pulp markets, demand has been

hikes
Market conditions (tight supplies) favour pulp price hikes especially in 1H 2017

(April 26, 2017) On a whole, market conditions favour pulp price hikes (especially hardwood).

rcp
Link: record recovered paper rates in the U.S

(USA, April 2017) Another month, another record-setting several weeks for recovered paper pricing. … At

sappi
Sappi Europe to Increase Price for Packaging and Speciality Grades

(Brussels, April 20, 2017) Sappi Europe has announced prices increases for all Packaging and

linerbaord_generic
Nippon Tokai Industrial Paper Supply to Hike Price for Linerboard and Corrugated Medium

(Japan, April 12, 2017) Nippon Tokai Industrial Paper Supply Co., Ltd. on April 4

hiTec_mitsubishi
Mitsubishi HiTec Paper to Hike Price for Specialty Papers

(Germany, March 31, 2017) Mitsubishi HiTec Paper said that it will implement a 6-8%

UBS_logo
Ratings: Brazil pulpmakers — UBS sees short-term price steam reversing later; raise HW price forecast to $551 from $492

(Mumbai, March 16, 2017) According to UBS Securities analysts, pulp price support is likely

norske_tasmania
Norske Skog announces price increases

(NZ, March 15, 2017) Norske Skog, a global leader in production of newsprint and

suzano
Brazil’s Suzano raises China pulp prices to $660 per tonne

(Sao Paulo, Brazil, March 13, 2017) Brazilian wood pulp and paper producer Suzano Papel

forecast
BMO’s 2017-2018 Forecast Rollout (for pulp/paper)

(Montreal, Canada, January 2017) The pulp and paper space faces some challenges in 2017.

pricehike
Link: Indian paper cos push through price hikes supported by costlier imports

(Mumbai, March 09, 2017) Since January, most paper companies have raised prices at least

hikes
Link / China: paper producers hike prices riding on surging demand and limited supply

(Shanghai, China, March 06, 2017) Chinese demand continues to outstrip capacity, with pulp /

morrum_sodra
Södra to increase price for NBSK pulp in Europe

(Stockholm, Sweden, March 07, 2017) As of April 1st 2017 Södra is raising the

recycled_paper
Link: record global recovered fibre consumption pushing up prices

(March 2, 2017) China started to enter the market more in 1996, helping to

printingpaper_generic
Nippon Paper Industries announced price hike for printing and communication papers in Japan

(Tokyo, Japan, Feb. 21, 2017) Nippon Paper Industries Co., Ltd. today announced price increases

fourthQuarter_generic
Pulp firm Mercer reviews Q4/16: “growth in softwood deliveries continue to be strong; looking at strong prices in February / March”

(Calgary, Canada , Feb. 10, 2017) [Extracts from Q4 2016 Financial Report & Conference

pulp wood
Södra to Increase Market Price for Softwood Pulp in Europe

(Sweden, Feb. 10, 2017) Södra announced that it will increase its market price for

sappi_finepaper
Sappi Europe to Increase Prices for its European Coated and Uncoated Fine Papers

(Brussels, Feb. 7, 2017) Sappi Europe announced that it will increase prices for all

Lecta_CWF
Lecta to Hike Prices for all its 2-side CWF Paper Grades in Europe

(Spain, Feb. 8, 2017) Lecta announced that it will increase the prices of all

molded_wooden
Sonoco Announces Price Increase in North America for Molded Wooden Plugs

(USA, Feb. 07, 2017) The Reels Division of Sonoco today announced it is implementing

kemira
Kemira Increases Prices of Polymer Products in Americas

(USA, Jan. 23, 2017) Kemira is announcing price increases on polyacrylamide polymers in all

arrow_up_generic
New year starts with improved pulp price momentum; price hikes announced for February

(Singapore, January 17, 2017) While 2016 was a somewhat quite year for pulp prices

paperTubesCore_generic
Sonoco Implementing Price Increase for Paperboard Tubes and Cores

(USA, Jan. 13, 2017) Sonoco today announced it is implementing price increases for all

paperTubesCore_generic
Caraustar Hikes Prices on its Paper Tube, Core and Protective Packaging

(USA, Jan. 17, 2017) Caraustar Industries, Inc. announced that prices on its paper tube,

pricehike
Pulp price hikes planned for European markets in January

(Gernsbach, Germany, 10 Jan 2017) Manufacturers of northern bleached softwood kraft (NBSK) have informed

URB_generic
Caraustar to Increase Price on All Uncoated Recycled Paperboard Grades

(USA, Jan. 10, 2017) Caraustar Industries announced a price increase of $60 per ton

URB_2_generic
Sonoco implementing price increase for all uncoated recycled paperboard products

(USA, Jan. 12, 2017) Sonoco announced it is implementing a $60 per ton price

generic
Improving market fundamentals for HW pulp; a tight market to support price hikes

(02 Dec 2016) PPPC [Pulp & Paper Products Council] stats for hardwood pulp for

woodfree
Link: Higher prices poised to take hold on Britain’s woodfree paper

(Gernsbach, Germany, Dec. 13, 2016) Manufacturers are pushing for price hikes for printing and

hikes
Updated: BEK prices continue to rise; NBSK prices firming up in China

(December 12, 2016) Some updates to our news report dated Dec. 02, 2016 “Pulp

kemira
Kemira Increases Prices of Polymer Products in Europe

(Helsinki, Finland, Dec. 8, 2016) Kemira on Dec. 1 announced a price increase for

hikes
Pulp producers come out with price hikes for BEK & other pulp grades w.e.f January 01, 2017

(02 Dec 2016) The hardwood pulp (eucalyptus kraft) segment continues to report strong prices.

paper_generic
Link: Paper Prices in UK Set for 5 – 10 Percent Increase

(London, UK, Dec. 05, 2016) Most of the major papermakers have sent letters, seen

paper_rolls
Link: Paper and Packaging Prices on the Rise

(China, Nov. 18, 2016) Since early November, many Chinese carton factories began to reject

sappi
Sappi Europe to hike graphic paper prices by 10 per cent in the UK market

(London, UK, Nov 03, 2016) Sappi Europe intends to increase prices for all graphic

idempapers
Idempapers to Hike Price for Carbonless Sheets

(Brussels, Belgium, Oct. 13, 2016) Belgium-based specialty papermaker Idempapers SA said that it will

pricehike
Resolute, Verso and Catalyst Announce Price Hikes for Coated Groundwood and SC Grades

(USA, Oct. 07, 2016) Major North American producers of groundwood and SC papers have

forecast
Finland’s Metsa sees room for pulp price hikes; says new pulp line to supply growing China market

(Helsinki, Finland, Sept. 27, 2016) Finland’s Metsa Fibre sees a chance of raising prices

papertubes
Sonoco to hike price for paperboard tubes and cores

(Hartsville, SC USA, Sept. 28, 2016) Sonoco recently announced it will raise the price

kapstone
KapStone Container Corporation announces price increase

(USA, Sept. 28, 2016) KapStone Container Corporation will be increasing box prices by a

OCC_3
Link: Strong Domestic Demand in U.S. for Old Corrugated Containers Pushing Prices

(USA, September 23, 2016) Domestic demand in the U.S. for old corrugated containers (OCC)

URB
Sonoco Announces Price Increase for All Uncoated Recycled Paperboard Products

(USA, Sept. 15, 2016) Sonoco today announced that it will raise the price for

sonoco_recycling
Sonoco announces price increase on recycled paperboard in U.K.

(London, July 28, 2016) Sonoco-Alcore S.a.r.l. today announced it will raise prices by £40

pulp
Price Watch: Södra raises price for softwood pulp in Europe from June 1st

(Stockholm, Sweden, June 22, 2016) Södra, Mercer International, and Metsӓ Fibre are trying to

Loading...