Blog Post

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 and no major prices movements were reported in December 2016, the new year has started off on a strong note with both NBSK and BEK producers looking to push price hikes.
In Europe, for instance, “different manufacturers of northern bleached softwood kraft (NBSK) informed their European customers of plans to raise their prices for NBSK pulp to $820/metr.t with effect from 1 January.” As per the January 10 EUWID report, “several industry players believe that they will be successful in implementing their asking prices as demand for NBSK did not level off over the Christmas and New Year holidays and no large spot lots were doing rounds at the end of the year.”
As per EUWID, “bleached eucalyptus kraft (BEK) pulp are also trying to lift their prices on the market in Europe. In December, several manufacturers have announced a price hike for BEK pulp, effective 1 January.” And in China, as per RISI reports, suppliers are pushing for price hikes of up to $40/tonne.
Meanwhile, Canada-based West Fraser came out with the first Feb. 1 pricing announcement in any market worldwide, hiking Feb. 1 softwood, hardwood BCTMP price by $20/tonne in China.
In fact, some BEK producers have been coming out with their second round of global price hikes.Fibria has informed clients of a newUS$30/tprice increase, valid for its February sales. “The company targets list prices in Asia at US$600/t,US$710/t in Europe and $890/t in North America. This marks the second round of global price hikes recently, and would entail the 4th price hike in Asia since prices declined below US$500/t in the region,” a BTG Pactual report dated January 12 disclosed.
Chile’s Arauco is also set to increase market pulp [BSK] prices by $20-30/tonne in China effective with February shipments, becoming the third major producer to announce a February price hike for China after West Fraser and Fibria.
Other producers to hike February prices for China include Ence, with a $35/t BEK price hike w.e.f. Feb 1; Eldorado with a global $30/tonne BEK price increase effective February 1; and Chile-based CMPC with a $20-30/tonne price increases in Asia effective February.
Analyst Report
With APP having started up its OKI pulp mill in Indonesia — first BHK pulp bales were produced on Dec. 14 — analysts are waiting to see what impact the new capacity will have on the HW market.
Commenting on the 2017 outlook for the global hardwood (HW) market, a BTG Pactual report dated January 12, 2017, said: “The late start-up of APP’s Oki plant helped relieve many concerns over the S&D outlook for HW. It caught Chinese buyers unprepared with low inventories in expectations of lower prices ahead and this allowed room for a series of hikes (4 since October in Asia). In addition, APP stated that it will “only” allocate ~1.2Mt of pulp to the market (= lower price distortion potential?) and that its ramp-up should be at a cautious pace (positive). On top of that, some closures/conversions (400-600kt) from APRIL have also provided some additional relief. To finalize, the demand side of the equation could also surprise positively as repressed demand (from expectations of an earlier OKI start-up) could lead to a surge in pulp imports into China (RISI expects at least +1.2Mt, above 6% y/y growth). We see the operating rate for HW in 2017 at 90% which arguably is a tight market, supportive of price hikes.”
To read related articles look up:
1. “Improving market fundamentals for HW pulp; a tight market to support price hikes”
2. “Updated: BEK prices continue to rise; NBSK prices firming up in China”
3. “Pulp producers come out with price hikes for BEK & other pulp grades w.e.f January 01, 2017” (Source: EUWID, RISI, BTG Pactual, PPPC & other industry reports)

Leave a Reply

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

Related Posts

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

Mitsubishi HiTec Paper to Hike Price for Specialty Papers

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

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 Skog announces price increases

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

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

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

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

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

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 /

Södra to increase price for NBSK pulp in Europe

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

Link: record global recovered fibre consumption pushing up prices

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

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

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 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 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

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 Increases Prices of Polymer Products in Americas

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

Sonoco Implementing Price Increase for Paperboard Tubes and Cores

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

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,

Pulp price hikes planned for European markets in January

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

Caraustar to Increase Price on All Uncoated Recycled Paperboard Grades

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

Sonoco implementing price increase for all uncoated recycled paperboard products

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

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

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

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 Increases Prices of Polymer Products in Europe

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

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.

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

Link: Paper and Packaging Prices on the Rise

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

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 to Hike Price for Carbonless Sheets

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

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

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

Sonoco to hike price for paperboard tubes and cores

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

KapStone Container Corporation announces price increase

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

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)

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 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

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