Currency effects thwart price hike plans on the pulp market

摘要

Implementing the second phase of the hike for northern bleached softwood kraft pulp is proving to be more difficult than expected. Manufacturers report unbroken, excellent demand. Order books are said to be full and there are reportedly no indications that the situation will change in the foreseeable future. European paper mills, however, still do not want to accept the second instalment of the hike as they have already had to foot a significantly higher hike in euros last month in view of the strong US dollar. By the end of week 43, suppliers and their customers appeared to have agreed on a price frame of $935-940/metr.t for October but the final prices, as usual, will be known only at the end of the month. Prices for southern softwood pulp still amount to $880-890/metr.t. As expected, eucalyptus pulp manufacturers are finding it difficult to increase prices to $750/metr.t. "The announcement was well-timed as it was made shortly before the London Pulp Week", one EU-WID respondent commented, adding that the current market situation is also firmer compared to the first half of the year (see also the current PPPC statistics). Even so, suppliers appear to be facing sheer granite when they talk to converters. The latter are not prepared to pay more for BEK pulp in view of fine availability and the fact that they have already paid a higher price in euros in September given exchange rate developments. As such, prices reportedly inched up only at the lower end of the frame, to move in the revised frame of $720-730/metr.t. Most negotiations were, however, still in progress at the beginning of week 44.