October pulp prices

Worldwide list of producers increasing October market pulp prices

SAN FRANCISCO, Oct. 5, 2009 (RISI) - Market pulp producers are now pushing to implement $30-50/tonne price increases in North America, Western Europe, and Asia, effective with October shipments. RISI has mapped the price increases by producer, region, and effective date.

Arauco, the world's second-largest producer, was the first major to kick off the latest round of price increases when it slated $30-$40/tonne hikes on bleached radiata pine, unbleached softwood (UBK), and bleached eucalyptus (BEK) in China on Sept. 18. Donghae Pulp was the first producer to come out with an October increase, slating a $50/tonne increase in China on its hardwood Sept. 4.

Northern bleached softwood kraft (NBSK) major Canfor Pulp on Sept. 18 moved its Oct. 1 prices up $30/tonne in North America -- the continent's first price increase on any grade -- as well as in Asia, where it has a similar increase on specialty UBK.

The Vancouver-headquartered firm later added Europe to the regions it would raise prices by $30/tonne, to $770/tonne after major European producer Sodra came out with a $30/tonne increase, at $760/tonne.

Those producers set the tone in North America and Europe. Various North American producers including Domtar, West Fraser, Tembec, and SFK Pulp, among others all planned US NBSK prices at $770/tonne, while Rottneros, Botnia, and Mercer went for $760/tonne in Europe.

In hardwood kraft, Fibria flexed its muscles on Sept. 21 as a newly formed company with some 5.7 million tonnes/yr of BEK capacity, telling customers worldwide that it would lift prices $50/tonne. Other BEK producers such as Suzano and CENIBRA later moved their Oct. 1 prices up $50/tonne as well.

Northern bleached hardwood kraft (NBHK) producers last week came out with their own $50/tonne price increases. Alberta-Pacific (Alpac), Domtar, and Sappi Fine Paper North America told customers they'd increase prices mostly $50/tonne in their key markets.

Southern bleached hardwood kraft (SBHK) meanwhile will see producers Domtar and Parsons & Whittemore (P&W) go for $50/tonne increases in the USA.

P&W also has a $50/tonne SBHK hike to Europe, as well as $30/tonne increases on southern bleached softwood kraft (SBSK) in both regions.

International Paper was the first SBHK and SBSK producer to slate higher October prices in the USA when it moved on Sept. 24. The same day, Tembec moved up its prices in Europe on the grades, which is made at its French mills.